Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, March 28, 2014

Article Excerpt

BAXTER INTERNATIONAL INC., $72.85, Toronto symbol BAX, rose 8% this week on news that it plans to split into two separate public companies. One will focus on medical devices, such as intravenous pumps and kidney-dialysis equipment. This business’s revenue was $8.7 billion, or 57% of Baxter’s $15.3-billion total, in 2013. The other firm will make biopharmaceutical products, including vaccines and drugs for hemophilia. Its 2013 revenue was $6.6 billion. Baxter will hand out shares in the biopharmaceutical company to its current investors, who will not be liable for capital gains taxes on their new shares until they sell them. Regulators and shareholders must approve the breakup, but the company aims to complete it in mid-2015. Breakups like this tend to work out well over the long term, as they let both companies focus on their already well-established businesses. Baxter is still a buy. Please make sure you are logged in to your account to access these articles. Click here if you’ve lost your password. Baxter was recently…