Q: I have TOI, LMN and NXT in my portfolio, thanks to 5i. Thank-you. Are there other quality companies that you could recommend for investigation, that are recent spinoffs or splits from a main company? Are there any upcoming spinoffs that should be kept on a watchlist? Thanks for your continuing excellent analysis.
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: Seasons Greetings!
Can I please get your high level thoughts for DHR and TMO.
Do you like them for a long term hold?
If yes, are they sufficiently different so I should consider buying both?
Which one has the highest exposure to the "water" theme?
Can I please get your high level thoughts for DHR and TMO.
Do you like them for a long term hold?
If yes, are they sufficiently different so I should consider buying both?
Which one has the highest exposure to the "water" theme?
Q: What do you think is a good price to top up an existing (underwater) position?
Q: Two questions about the Veralto (VLTO) spinoff from Danaher (DHR) (I acquired 125sh as a result of owning 375 shares of DHR), in a taxable account:
1. Would you add to this VLTO position? (In general, per my previous experience, spinoffs are usually attractively priced in the first months following their creation, due to numerous shareholders disposing of relatively small numbers of shares received). Plus, I initially purchased DHR several years ago in large part due to its “water business” (now spun off as VLTO), and so am keen to continue to invest in this sector.
2. Do you know how a Canadian shareholder would account for these shares (in a taxable account)? It looks like my brokerage account has valued the spinoff at US$9631.25, and has not changed (at least, not yet) the book value of the DHR shares (US$113,231). In other words, would the spinoff just be considered as a one-time foreign income event (US$9631.25 or ~CAD$13,200, at ~1.37 exchange rate); sort of like a special foreign dividend, but without any withholding tax applied, with the cost basis for DHR unchanged (US$113,231) and US$9631.25 as the cost base for the acquired VLTO shares (with me paying tax on ~CAD13,200 of foreign income)? Or should this event be considered non-taxable, with the pre-spinoff cost basis of the DHR shares split proportionately between the two entities, DHR and VLTO (something like US$103,600 for DHR and US$9631.25 for VLTO)?
Ted
1. Would you add to this VLTO position? (In general, per my previous experience, spinoffs are usually attractively priced in the first months following their creation, due to numerous shareholders disposing of relatively small numbers of shares received). Plus, I initially purchased DHR several years ago in large part due to its “water business” (now spun off as VLTO), and so am keen to continue to invest in this sector.
2. Do you know how a Canadian shareholder would account for these shares (in a taxable account)? It looks like my brokerage account has valued the spinoff at US$9631.25, and has not changed (at least, not yet) the book value of the DHR shares (US$113,231). In other words, would the spinoff just be considered as a one-time foreign income event (US$9631.25 or ~CAD$13,200, at ~1.37 exchange rate); sort of like a special foreign dividend, but without any withholding tax applied, with the cost basis for DHR unchanged (US$113,231) and US$9631.25 as the cost base for the acquired VLTO shares (with me paying tax on ~CAD13,200 of foreign income)? Or should this event be considered non-taxable, with the pre-spinoff cost basis of the DHR shares split proportionately between the two entities, DHR and VLTO (something like US$103,600 for DHR and US$9631.25 for VLTO)?
Ted