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JOHNSON & JOHNSON $193 is a spinoff buy. The company (New York symbol JNJ; Manufacturing sector; Shares outstanding: 2.4 billion; Market cap: $463.2 billion; Dividend yield: 2.7%; Takeover Target Rating: Medium; www.jnj.com) sold shares of its consumer drug business, Kenvue Inc. (New York symbol KVUE), in May 2023 to the public at $22.00 a share. It later let its own shareholders exchange JNJ shares for Kenvue shares at a 7% discount.
The company now plans a second spinoff—its Orthopaedics business. Called DePuy Synthes, it makes hip, knee, and shoulder implants as well as surgical instruments. Its 2024 sales of $9.2 billion represented 10% of Johnson & Johnson’s total revenue. The company will probably complete the transaction in early 2027.
The company now plans a second spinoff—its Orthopaedics business. Called DePuy Synthes, it makes hip, knee, and shoulder implants as well as surgical instruments. Its 2024 sales of $9.2 billion represented 10% of Johnson & Johnson’s total revenue. The company will probably complete the transaction in early 2027.
Diversified manufacturing firm Honeywell now plans to break up into three new companies. That follows pressure from activist investor Elliott Investment Management, which owns $5 billion of Honeywell’s shares.
The first of those spinoffs is Solstice (see next page), which makes chemicals for a variety of industrial products. It will begin trading in early November.
Honeywell now expects to complete the breakup of its automation and aerospace operations in 2026.
The first of those spinoffs is Solstice (see next page), which makes chemicals for a variety of industrial products. It will begin trading in early November.
Honeywell now expects to complete the breakup of its automation and aerospace operations in 2026.
A: Signet Jewelers Ltd., $106.58, symbol SIG on New York (Shares outstanding: 41.0 million; Market cap: $4.0 billion; www.signetjewelers.com), is the world’s largest retailer of diamond jewellery.
The company operates roughly 2,623 stores, most under the names Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, JamesAllen.com, Rocksbox, Peoples Jewellers, H. Samuel, and Ernest Jones.
In September 2022, Signet completed its acquisition of Seattle-based Blue Nile for $360 million. Blue Nile is a leading online retailer of engagement rings, wedding rings and fine jewellery.
The company operates roughly 2,623 stores, most under the names Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, Diamonds Direct, JamesAllen.com, Rocksbox, Peoples Jewellers, H. Samuel, and Ernest Jones.
In September 2022, Signet completed its acquisition of Seattle-based Blue Nile for $360 million. Blue Nile is a leading online retailer of engagement rings, wedding rings and fine jewellery.
A: Crombie Real Estate Investment Trust, $15.32, symbol CRR.UN on Toronto (Units outstanding: 109.6 million; Market cap: $2.9 billion; www.crombie.ca), owns, runs, and develops real estate assets.
This REIT has 306 properties making up about 8.8 million square feet. Retail properties account for 79.4% of that square footage, followed by retail-related industrial at 13.1%, office, 4.3%, and mixed-use residential, 3.2%.
Crombie’s occupancy rate is a high 97.2%.
This REIT has 306 properties making up about 8.8 million square feet. Retail properties account for 79.4% of that square footage, followed by retail-related industrial at 13.1%, office, 4.3%, and mixed-use residential, 3.2%.
Crombie’s occupancy rate is a high 97.2%.
A: The Cooper Companies Inc., $75.28, symbol COO on Nasdaq (Shares outstanding: 198.8 million; Market cap: $13.7 billion; www.coopercos.com), is a California-based healthcare business with two operating segments.
The first segment is Cooper Vision (67% of revenues); it makes and sells soft contact lenses for the vision-correction market worldwide. Cooper Vision specializes in lenses for common eye conditions like astigmatism, presbyopia, myopia, and ocular dryness.
The second segment, Cooper Surgical (33%), focuses on fertility and women’s health. It develops and markets the medical devices, diagnostic products and surgical instruments used by gynecologists and obstetricians.
Over the years, Cooper has expanded significantly through acquisitions.
The first segment is Cooper Vision (67% of revenues); it makes and sells soft contact lenses for the vision-correction market worldwide. Cooper Vision specializes in lenses for common eye conditions like astigmatism, presbyopia, myopia, and ocular dryness.
The second segment, Cooper Surgical (33%), focuses on fertility and women’s health. It develops and markets the medical devices, diagnostic products and surgical instruments used by gynecologists and obstetricians.
Over the years, Cooper has expanded significantly through acquisitions.
A: Canadian Tire Corp. (class A non-voting) symbol CTC $250.01 and CTC.A $173.68 (Shares outstanding: 54.1 million; Market cap: $9.5 billion; TSINetwork Rating: Above Average; www.canadiantire.ca) operates 503 Canadian Tire hardware stores. They sell automotive parts and services, and household and sporting goods. Note—most Canadians live within 15 minutes of at least one of those stores.
The company’s other operations also enrich its outlook. They include 169 stores operating under the PartSource (auto parts) and Party City (party supplies) banners.
The company’s other operations also enrich its outlook. They include 169 stores operating under the PartSource (auto parts) and Party City (party supplies) banners.
The Successful Investor first launched in 1994—31 years ago. In that time, the team and I have fielded thousands of questions from subscribers.
We recently received an interesting one from an Inner Circle member (see below). It’s a question that I’ve seen before over the years, in one form or another. In this most-recent case, the member wonders if it’s OK to depart from the key TSI principle to diversify your portfolio across most if not all of the 5 main economic sectors—Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities.
We recently received an interesting one from an Inner Circle member (see below). It’s a question that I’ve seen before over the years, in one form or another. In this most-recent case, the member wonders if it’s OK to depart from the key TSI principle to diversify your portfolio across most if not all of the 5 main economic sectors—Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities.