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Spinoffs

Here’s our Spinoff Stock Portfolio for July 2025

You Can See Our Spinoff Stock Portfolio For July 2025 Here.

Why we like spinoffs so much
We think that spinoffs are the closest thing you can find to a sure thing for two main reasons:

1) The management of a parent company will only hand out shares in a subsidiary to its own investors if it’s all but certain that business, and the parent, will be better off after the spinoff.

2) Spinoffs involve a lot of work and legal fees....

1 min read

Pat McKeough

Spinoffs

Our stock updates keep you focused

INTERRENT REAL ESTATE INVESTMENT TRUST $13.57 is a hold. The REIT (Toronto symbol IIP.UN; Manufacturing sector; Units outstanding: 139.8 million; Market cap: $1.9 billion; Distribution yield: 3.7%; Takeover Target Rating: Highest; www.irent.com) owns and operates rental apartment properties with a total of 13,408 suites.

Under pressure from activist investor Anson Funds, which owns 9% of the units, the REIT has accepted a $13.50-a-unit takeover offer from executive chair Mike McGahan and Singapore sovereign wealth fund GIC.

InterRent has 40 days to seek out a better offer, which is why the units are currently trading just above the current bid.

Investors should tender their units to the offer....

2 min read

Pat McKeough

Spinoffs

WBD expects breakup to boost value

In April 2022, telecom giant AT&T Inc. (New York symbol T) merged its WarnerMedia business with Discovery Inc. to form a new company called Warner Bros. Discovery. AT&T investors received 0.241917 shares of WBD as a tax-free distribution for each share they owned.

The new firm has struggled as consumers continue to cut their cable TV subscriptions in favour of streaming services....

2 min read

Pat McKeough

Spinoffs

Comcast split may not be enough

COMCAST CORP. $34 is a hold. The company (Nasdaq symbol CMCSA; Consumer sector; Shares outstanding: 3.9 billion; Market cap: $132.6 billion; Dividend yield 3.8%; Takeover Target Rating: Lowest; www.comcast.com) is a global media giant with five main businesses: Residential Connectivity & Platforms (cable TV systems), Business Services Connectivity, Media (including NBCUniversal), Studios, and Theme Parks.

The company will spin off its cable TV channels—including MSNBC, CNBC and USA Network—as a separate business called Versant....

1 min read

Pat McKeough

Spinoffs

Lyft settles with activist

LYFT INC. $15 is a hold. The company (Nasdaq symbol LYFT; Consumer sector; Shares outstanding: 420.6 million; Market cap: $6.3 billion; No dividend paid; Takeover Target Rating: Medium; www.lyft.com) is the second-largest ride-hailing company in the U.S....

1 min read

Pat McKeough

Spinoffs

Activists are targeting these spinoffs

These two recent spinoffs have struggled due to weaker demand for their products. That has attracted activist investors who aim to make improvements, or even sell them to larger firms. While takeovers are hard to predict, we feel Lamb Weston is in a better position to stage a recovery.

VICTORIA’S SECRET & CO....

2 min read

Pat McKeough

Spinoffs

Maple Leaf aims for pure-play gains

Shareholders of Maple Leaf Foods have now approved the company’s plan to spin off as “Canada Packers Inc.” its business focused on raising and processing hogs.

Before the end of 2025, investors will receive 0.2 of a Canada Packers share for each Maple Leaf share they own....

2 min read

Pat McKeough

Spinoffs

Spinoff spotlight: Fortive Corp.

FORTIVE CORP. $70 is a spinoff buy. The company (New York symbol FTV, Manufacturing sector Shares outstanding: 339.9 million; Market cap: $23.8 billion; Dividend yield: 0.5%; Takeover Target Rating: Medium; www.fortive.com) has three main divisions: Intelligent Operating Solutions makes testing gear that helps industrial customers improve the reliability of their machinery; Precision Technologies makes electrical testing equipment and sensors; and Advanced Healthcare Solutions makes sterilization and disinfection equipment for healthcare facilities.

Fortive, originally a spinoff from Danaher Corp....

1 min read

Pat McKeough

Spinoffs

This spinoff continues to pay off

On November 1, 2016, the old Alcoa Inc. split into two separate companies—Arconic Inc. (focused on manufactured aluminum products) and spinoff Alcoa Corp. (focused on bulk aluminum).

Arconic Inc., itself, then split into two companies on April 1, 2020: Howmet and Arconic Corp., which makes rolled aluminum products....

3 min read

Pat McKeough

Spinoffs

This stock’s now below its IPO price

3 min read

Pat McKeough

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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.