The Gap Inc. (GPS), Time Warner Inc (TWX), Jack in the Box Inc. (JACK): These Companies Have Valuable Subsidiaries and Few People Realize It

Of course, not everyone is bullish on Chipotle. Both David Einhorn and Jeff Gundlach have criticized the chain, the later of which characterized the concept of a gourmet burrito as an “oxymoron.”

Still, Chipotle has continued to defy its critics in recent months. If investors like Chipotle’s concept, Jack in the Box Inc. (NASDAQ:JACK)’s Qdoba offers a similar ancillary play.

Yahoo! owns Alibaba and Yahoo! Japan

When it comes to Yahoo! Inc. (NASDAQ:YHOO), investors are really getting three companies in one. Much of the recent media coverage has focused on CEO Marissa Mayer and her attempts to turn around Yahoo!’s core business, along with speculation over possible acquisitions.

But, much more important to Yahoo! Inc. (NASDAQ:YHOO)’s investors are the company’s stakes in Alibaba and Yahoo! Japan. Yahoo! owns roughly 24% of China’s Alibaba group and 35% of Yahoo! Inc. (NASDAQ:YHOO) Japan. Analysts at Bank of America recently upgraded the stock, giving it a Buy rating and $28 price target. That upgrade was largely predicated on hope for Yahoo!’s Asian assets.

Alibaba has been growing increasingly valuable in recent months, while Yahoo! Japan is — like other Japanese companies — being helped out by the nation’s new aggressive monetary policy.

Whatever Mayer does or does not do to turn around core Yahoo! may not matter much if the company’s Asian assets continue to appreciate in value.

Sum of the parts

When picking stocks, investors should always consider the individual parts of a company, as well as the whole. The core business of a company might be stagnant or boring, but a hot subsidiary could offer the potential for real growth.

The article These Companies Have Valuable Subsidiaries and Few People Realize It originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

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