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17 handpicked stocks

Unlocking Value: The Finance Arm Spinoff

Harley-Davidson is negotiating the sale of a stake in its financing arm, a strategic move to raise significant capital. This theme focuses on other manufacturers with large, valuable financing units that could be prime candidates for similar spin-offs or sales to unlock value.

Author avatar

Han Tan | Market Analyst

Published on July 29

Your Basket's Financial Footprint

Market capitalisation breakdown for a finance-focused stock basket with large-cap dominance.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and closer market tracking, reducing idiosyncratic risk.
  • Treat as a core holding for portfolio stability rather than a speculative, high-growth position.
  • Likely to offer steady, long-term value; returns are not guaranteed and may lag high-growth stocks.
Total Market Cap
  • F: $49.99B

  • COF: $137.98B

  • SYF: $26.65B

  • Other

About This Group of Stocks

1

Our Expert Thinking

Harley-Davidson's $5 billion financing arm deal with PIMCO and KKR signals a broader trend where manufacturers monetize their captive finance units. This strategic move generates significant liquidity while allowing companies to refocus on core operations, creating a compelling investment opportunity for similar businesses.

2

What You Need to Know

This group includes companies with substantial in-house financing operations like automakers and equipment producers. These businesses provide loans and leases directly to customers, creating valuable financial divisions that could be spun off or sold to unlock shareholder value.

3

Why These Stocks

Each company was handpicked by professional analysts for having significant financing arms that could follow Harley's playbook. The selection includes both potential spinoff candidates and financial institutions positioned to be acquirers in this evolving landscape.

Why You'll Want to Watch These Stocks

🔓

Value Unlock Catalyst

These companies could follow Harley's playbook, spinning off valuable financing arms to generate billions in capital and boost stock prices through strategic value creation.

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Hidden Financial Goldmines

Many manufacturers sit on undervalued financing divisions worth billions. Smart investors are positioning early before these hidden assets get monetized.

Market-Moving Momentum

The positive investor reaction to Harley's deal shows the market rewards these strategic moves. Companies in this space could see similar stock price surges when they announce spinoffs.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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