Our first idea is a specialty chemical company that is benefiting from the industry turnaround and strengthening economy. Our second recommendation is profit-taking—almost a double—on a previous pick.
Hawkins, Inc. (HWKN)
From 2 for 1 Stock Split Newsletter
I like to think the 2 for 1 Index falls more on the sober investment side of the equation. I have always favored profitable companies that make or sell things we actually need. I like dividends because they indicate a company is conscious of its owners and is working in their interest. Similarly, strong balance sheets are an indication that a company’s board members are not themselves simply speculators gambling with OPM (other peoples’ money).
The proliferation of SPACs, (special purpose acquisition companies), investment instruments with no product and no earnings, is now dominating the buzz on Wall Street and is the latest manifestation of the urge to gamble.
There have been several split announcements since the last adjustment to the index. When compared with the various splits going back a few months, none of the recent splits quite measure up. Therefore, I’m going with Hawkins, Inc.
Hawkins announced a 2 for 1 split back in January and I’ve been watching it with interest since then. A recent dip in its price makes it more attractive than it was last month. Hawkins is a company that meets all of the desirable criteria noted in the paragraph above, including an insider ownership around 9.4%.
HWKN is a small cap business based in Minnesota making and selling specialty chemicals used in industrial processes, water treatment, and food preparation. Reasonable valuation numbers, good growth over the last few years, a very dependable dividend, and a low measure of volatility all make HWKN a good fit for the 2 for 1 Index.
Neil Macneale, 2 for 1 Stock Split Newsletter, 2-for-1.com, 408-210-6881, April 2021
Sell: Exponent Inc. (EXPO)
From 2 for 1 Stock Split Newsletter
Updated from WSBD 806
Exponent Inc. will be deleted from the 2 for 1 Index next Monday. EXPO has been one of the best companies 2 for 1 has ever had, with over a 31% annualized overall return over 5½ years. It’s been in the index more than the standard 30 months because it split a second time while it was already on the list.
Hopefully, it will split again soon so we can add it back into the index. Exponent is a great company!
Neil Macneale, 2 for 1 Stock Split Newsletter, 2-for-1.com, 408-210-6881, April 2021