ConAgra Foods (CAG) announced in November that it was spinning off Lamb Weston, its business unit focused on frozen potatoes. Yes, frozen potatoes. It sounds funny, but ConAgra is cleaning out the cupboard following a disastrous and ill-advised acquisition of Ralcorp a few years ago and the recent arrival of new CEO Sean Connolly. That decision was “assisted” by Jana Partners, an activist investor that owns 7% of the stock. But those expecting the Lamb Weston spinoff to happen in Fall 2016, as announced, might be disappointed. Continue reading ConAgra To Spin Off a Frozen Potato Company?
It’s been quite a roller coaster for NorthStar Realty Finance (NRF) and NorthStar Realty Europe (NRE) over the past couple months. Both have plunged as investors have become increasingly concerned about their externally managed structures and, for NorthStar Realty Finance, the sustainability of its dividend. But which is the better buy? In fact, is one a better buy than the other? Continue reading Better Buy: NorthStar Realty Finance or NorthStar Realty Europe?
We’ve just made available our latest report: Our Top Dividend Stock for 2016. This high-yield stock pays out more than 7%, yet is conservatively financed and should grow that payout for years. But no one’s heard of the company — hey, they haven’t even held a conference call! You can access our three-page report on this hidden company by dropping your name in the box at the top of the page.
This is a “buy it and forget it” kind of company that should be able to grow for years under the execs that made another company a stunning success over the last two decades. Now they’re back to do it again with a smaller company that they can grow quickly. I estimate the stock is worth 30% more than it’s trading for today, and a strong growth plan should lead to years of gains. We expect the management team to continue the solid work it’s already undertaken and to drive strong double-digit annual returns for years.
Intrawest (SNOW) joins the ranks of the many companies participating in a tender offer. The company is offering to purchase up to $50 million of its stock, or between 11% and 12.3% of its outstanding shares, depending on the purchase price. It’s offering to buy at a price between $9 and $10 per share. With the stock now at $8.50 and bouncing on the news, there’s a chance of only a little risk-free profit here, however. So for those investors looking for a quick buck and who didn’t already own the stock, it’s probably better to move on. But the Intrawest tender offer does have my favorite provision for small shareholders, the odd lot priority. Continue reading Intrawest Tender Offer Sends Stock Soaring