Take advantage of these outsource spinoffs

Article Excerpt

BROADRIDGE FINANCIAL SOLUTIONS INC. $89 (New York symbol BR; Finance Sector; Shares o/s: 116.6 million; Market cap: $10.4 billion; Takeover Target Rating: Medium; Divd. yield 2.2%; TSINetwork Rating: Average; www.broadridge.com) began trading on April 2, 2007, after it was spun off from New York-listed Automatic Data Processing (symbol ADP). We recommended the spinoff shortly after that, in the May 2007 issue of our Stock Pickers Digest newsletter at $20.68 a share. We said then that we thought Broadridge was a pioneer. Not only would it gain from the increasing complexity of securities regulations and increasing levels of share ownership—but also from the continuing fall in the cost of computing. Broadridge then became one of our first big spinoff successes. The stock has more than tripled since then. Now, the company is at the cutting edge again: it has formed a partnership with Canadian-based robo-advisor Wealthsimple. That firm manages over $1 billion in assets for 50,000 clients. Generally, robo-advisors provide portfolios composed of exchange-traded funds (ETFs)…