Topics

Growth Stocks

ELECTRONIC ARTS, $200.75, is a hold. The company (Nasdaq symbol EA; TSINetwork Rating: Extra Risk) (www.ea.com; Shares outstanding: 249.3 million; Market cap: $50.1 billion; Dividend yield: 0.4%) has now accepted an all-cash takeover offer of $210.00 a share from a group of investors. They include private equity firm Silver Lake, as well as Saudi Arabia’s Public Investment Fund, which already owns 9.9% of EA.

The takeover bid represents a 53.7% gain since we first recommended EA in our April 2021 issue at $130.60. If shareholders and regulators approve, the buyers expect to complete the transaction in early 2026.

1 min read

Pat McKeough

Growth Stocks

Domino’s leads in its global markets

During the pandemic, Domino’s Pizza implemented strategies to support its businesses—strategies that are still paying off. The stock took a dip in July 2024 on a slower growth forecast, but going forward, we think the company is positioned to capitalize on its popular offerings to keep attracting customers. We recommend this stock as a Power Buy.

DOMINO’S PIZZA, $424.82 (New York symbol DPZ; TSINetwork Rating: Average) (www.dominos.com; Shares outstanding: 33.8 million; Market cap: $14.6 billion; Dividend yield: 1.6%), gives you exposure to the world’s largest chain of pizza stores offering takeout and delivery. The company (symbol DPZ on New York) operates 21,750 outlets, in the U.S. and 85 other countries. Franchisees run most of these stores.

2 min read

Pat McKeough

Spinoffs

Fermi taps into AI enthusiasm

FERMI INC. $20 is a hold. The company (Nasdaq symbol FRMI; Manufacturing sector; Shares outstanding: 592.8 million; Market cap: $11.9 billion; No dividends paid; Takeover Target Rating: Lowest; www.fermiamerica.com) is a real estate investment trust that plans to develop electrical generating facilities in the Texas Panhandle region. They will supply power to artificial intelligence (AI) datacentres that the company is also developing.

On October 1, 2025, Fermi completed an initial public offering of 32.5 million common shares at $21.00 each. The company’s founders, including former Texas governor Rick Perry, continue to control most of the outstanding shares.

1 min read

Pat McKeough

Spinoffs

These stock updates benefit you

KLARNA HOLDING AB $36 is a hold. Based in Sweden, the company (New York symbol KLAR; Finance sector; Shares outstanding: 377.3 million; Market cap: $13.6 billion; No dividend paid; Takeover Target Rating: Lowest; www.klarna.com) operates a buy-now-pay-later payment platform for online retailers. The 790,000 merchants on its system processed $112 billion worth of transactions in the past year from 111 million active customers in 26 countries.

On September 10, 2025, Klarna completed an initial public offering of 34.3 million common shares at $40.00 a share. The stock jumped to over $57 a share on the first day but is now down 10% since the IPO.

2 min read

Pat McKeough

Spinoffs

AI has spurred their big gains

On February 24, 2025, computer hard drive maker Western Digital spun off its flash memory business as a separate company called Sandisk. Investors received one Sandisk share for every three Western Digital shares they held.

Thanks to strong demand from the builders of new AI datacentres, Western Digital is up 145% since the split, while Sandisk has soared more than 300%.

Even so, both companies serve highly cyclical industries, which adds to their risk. As well, both firms make most of their products in China and other parts of Asia, which increases their exposure to U.S. tariffs.

2 min read

Pat McKeough

Spinoffs

Coty ponders a split for growth

COTY INC. $4.16 is a hold. The company (New York symbol COTY; Consumer sector; Shares outstanding: 873.9 million; Market cap: $3.6 billion; Dividend suspended in 2020; Takeover Target Rating: Medium; www.coty.com) is a leading maker of beauty and cosmetics products. Its main brands include CoverGirl, Max Factor, and Sally Hansen.

Due to strong competition from lower-cost brands, Coty is now exploring the sale (or spinoff) of its mass color cosmetics portfolio, which includes brands such as CoverGirl, Rimmel, Sally Hansen and Max Factor. Those products have annual sales of $1.2 billion, or about 20% of Coty’s total sales. The company is also considering selling its Brazilian operations, which generate annuals sales of $400 million.

1 min read

Pat McKeough

Spinoffs

These spinoffs have long-term appeal

2 min read

Pat McKeough

Spinoffs

New director will help merger talks

PERFORMANCE FOOD GROUP CO. $101 is a hold. The company (New York symbol PFGC; Consumer sector; Shares outstanding: 156.5 million; Market cap: $15.8 billion; No dividend paid; Takeover Target Rating: Medium; www.pfgc.com) distributes more than 250,000 food and food-related products in North America from 155 distribution centres to over 300,000 customers in the food-away-from-home industry.

The company is now discussing a potential merger with rival US Foods Holding Co. (New York symbol USFD).

1 min read

Pat McKeough

Spinoffs

Entertainment firms draw activists

Shares of these two entertainment companies are still below their pre-pandemic levels. That has attracted activist investors who aim to spur their stock prices with asset sales or spinoffs. Even so, we feel both offer limited prospects.

CINEPLEX INC. $12 is a hold. The company (Toronto symbol CGX; Consumer sector; Shares outstanding: 63.4 million; Market cap: $760.8 million; Dividend suspended in March 2020; Takeover Target Rating: Medium; www.cineplex.com) is Canada’s largest operator of movie theatres with 155 locations (1,607 screens). It also operates 16 location-based entertainment venues in seven provinces.

2 min read

Pat McKeough

Spinoffs

Corteva plans a spinoff of its own

Corteva took its current form when the old DowDuPont spun it off as part of the three-way breakup of its operations.

On June 1, 2019, DowDuPont investors received one Corteva share for every three shares they held. Since the spinoff, Corteva’s shares have jumped 118%.

Corteva now plans to split its seeds and chemical operations into two separate, publicly traded firms.

2 min read

Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

Chuck Chakrapani, PhD
Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

Jonathan Chevreau
Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

John Sartz
I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

Chuck J.
Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

Walter H.
Inner Circle Pro subscriber

Browse Premium Topics

Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.