They say “breaking up is hard to do” but in financial market break-ups spinoffs can be very profitable and give companies a new lease of life.
A spinoff is the creation of an independent company or in some cases more than one company through the sale or distribution of new shares of an existing listed company to shareholders holding the parent company at a certain date.
This month I will be taking a look at Restaurant Brands (QSR), which is the holding company of fast food company Burger King and café operator Tim Hortons.
Tim Hortons has just announced that they will be franchising in the UK, with the first outlets opening in 2017.
This month we will revisit biotech shares and the exchange-traded funds (ETFs) that track this sector and explain how to profit from the next move up in biotech stocks.
Back in July 2013 (was that really 3 years ago?!) my first Bullbearings article on biotech explained about the trend in healthcare spending, which is based largely on the ageing global population.
I am sure like most you are Brexhausted so rather than debate the UK decision to leave the EU I am going to update you on my bullish gold and mining shares call which I made here back in February and why I still believe we are going higher and Brexit is helping this trade.
So far in 2016 Gold is up 26%, Silver up 42% and the Junior mining ETF GDXJ which I featured is up a whopping 136% so with these moves you may expect me to say it’s time to get out and take profits but I believe we are still going higher in those that have missed out on Gold and Silver can still get in.
This stock is one of my favourite picks for the next decade and beyond. Johnson & Johnson is a very high quality stock which has growth potential as well as safe and dependable earnings that are pretty much immune to market cycles and plays into my aging population investing theme.
As a quick summary, a big reason I'm buying this stock is the economic context: people are living longer and the aging population are depending on healthcare services and pharmaceuticals. A way that you can help fund your own retirement is by investing in companies that will benefit from this demographic shift.
This month I will look at Binary Betting and how you can profit from the upcoming EU referendum vote which will be held on the 23rd June 2016.
Before we look at this specific case let me explain binary betting which has been growing in popularity the last few years.
This month I will look at shares of Apple (APPL) a company which hardly needs much of an introduction and many will be reading this on an Apple device of some sort.
Before we look at Apple it's worth addressing the science behind why “trees don’t grow to the sky” and what we can learn from Mother Nature in our trading and investing.
After a terrible run, casino shares are looking better and the tables are turning. So this shows the benefit of being an adaptable trader and switching from going short to going long.
The old saying goes along the lines of “the only way to make money at a casino is by owning one” and of course in the long run the house always wins as all casino games have a house advantage. But over the last two years the only way to win with casino stocks has been shorting them (which I have been) but I am now out of my short trades and back long again.
Back in 2003 I held a seminar in London and my guest was hedge fund manager and commodities guru Jim Rogers and whilst talking about mining stocks he said: “A gold mine is a hole in the ground with a liar standing on top of it”.
13 years on I still remember these wise words and any investment in a mining stock should only be considered with risk capital and it’s important to have an exit strategy.
As I write this article I have a strong case of déjà vu as what I am about to write is almost the same as I wrote exactly 12 months ago. And with the horrible start to 2016 for financial markets thanks to the China issues, here’s a stock which I believe will hold up again whatever the weather in 2016.
The stock is Imperial Tobacco (IMT) and anyone that purchased it last year made a very respectable 26%, thrashing the FTSE100 which was down over the same period.
Thu, 1st Jan - * (ShareCast News) - Banks and miners led the FTSE to a lower close Friday, in a session awash with blue-chip news including disappointing annual results from Royal Bank of Scotland and Standard Chartered, among other stocks reporting.