The Successful Investor Hotline – Friday, September 7, 2012

Article Excerpt

SHAWCOR LTD., $41.85, Toronto symbol SCL.A, jumped 18% this week after it announced that it will conduct a strategic review of its operations. This could lead to a sale of some of its businesses or the entire company. ShawCor makes sealants and coatings that keep oil and natural gas pipelines from rusting. It also manufactures industrial products, such as electrical wire and protective sheaths. The family of ShawCor’s founder controls the company through multiple-voting shares, which give them 63% of the total votes. It was their desire to sell their holdings that led to the strategic review. ShawCor’s high-quality businesses and low market cap of $2.9 billion would make it an attractive takeover target. However, there is no deadline for this review, so any takeover offer could still be months away. We now see ShawCor as a hold. ShawCor was recently covered in the September 2012 issue of The Successful Investor. Click here to access it. ShawCor was recently covered in The Successful Investor Hotline for…