News & Press
If you’re planning to pop the champagne corks as Uber becomes the third-largest IPO on record in what’s being coined the “stampede of unicorns,” it might be worthwhile disregarding the bombastic puffery and taking a step back from the herd.
From the late 1990’s to 2002, dot-com hysteria spelled boom and then game-over after the failure of numerous tech stocks with excessive stock equity valuations crashed, leaving millions of investors seriously out-of-pocket.
As 2020 comes into the picture, The Edge (who provide expertise in Spinoffs and special situations as well as sourcing underperforming companies for activist involvement) believes investors could well be facing yet another round of companies gearing up for failure.
American activist Cruiser Capital has a message for CEO’s and board directors across the country: shareholders are king. Straight-talking Chief Investment Officer Keith Rosenbloom insists boards have forgotten who they are there to represent.
And he says the entire system is “broken” due to a lack of “ownership mentality.”
The serving Chairman and newly appointed CEO of the aluminum giant Arconic, which is facing a class action suit following the deaths of 72 victims in the London Grenfell fire in 2017, is cashing in and could make as much as $20 million in just a year as he takes a smoke-and-mirrors approach to the company’s future.
John Plant, who agreed to a “perpetual” gagging order when he took the helm last month, bought nearly $4 million worth of shares in addition to his $1.6 million base salary in a one-week buying-spree, according to analysts at The Edge, who have been following developments amid his plans for a Spinoff designed to push up the share price.
It’s got the scorch of a blistering Dallas plot: debt, politics, sex, and media-moguls-at-war, which all has the potential to spark a fresh break-up where shareholders are the ultimate winners.
Forget Barbarians at the Gate and welcome to the world of AT&T; the Texas-based American multinational conglomerate, which through its acquisition of Warner Media is now embroiled in scandal that continues to cause fury on Pennsylvania Avenue.
Value investing is dead – or so it seems to The Edge CEO Jim Osman, who caught up with Hedge Magazine in London for a discussion on this strategy’s future and his top ideas in the space.
“Value investing has been a solid way of analysis. I believe it just doesn’t work on its own anymore. Nowadays, technology and machines do so much work and they do it faster. The numbers game, based on cheap valuation, is a thing of the past.”
John Steinbeck captured it best when he used the seminal Robert Burns poem ‘To a Mouse’ to lay the foundations for his own novella. But could the best-laid plans go awry when it comes to the most famous business deal on the planet?
A race against time is now in play as 21st Century Fox’s merger with Disney is facing delays that could put the brakes on the overall merger until at least summer 2019 – if not worse, according to The Edge, and their ongoing analysis of the situation.
Brazil’s antitrust regulator CADE (Conselho Administativo de Defesa Economica) ensured Disney CEO and Chairman Bob Iger’s hopes to push ahead with the mega-takeover hit a road block recently; but they are set to make a decision tomorrow.
Ferrari’s CEO Louis C. Camilleri’s first purchase of stock has put him in the pole position to earn millions of dollars as the company goes from strength to strength. Last July, Ferrari announced Camilleri, former Chairman & CEO of Philip Morris International, was to take the helm following the stepping down of then-CEO & Chairman Sergio Marchionne.
Initially, shareholders found the news startling and their reaction put Ferrari on the back foot as shares tanked, but 8 months later they have returned to form. Camilleri’s decision to purchase shares for the first time on December 14, 2018 (buying 10,000 at $102.5 per share) has made his purchase of RACE stock worth over $1 million, and came exactly two weeks before Ferrari announced a share buy back program, leading way to a +26% return.
Analysts from The Edge use directors and insider dealings to form a significant part of the research process in Spinoffs and other special situations and have looked at the numbers in-depth.
The Edge Consulting Group CEO Jim Osman tells Proactive Investors the investment research company that focuses on company spin-offs has compiled a report suggesting Merck & Co (NYSE: MRK) spin-off its animal health business, as the animal health business generates around $40 billion in revenue, The Edge expecting this to rise to $65 billion in 2025.
Osman says there’s significant value to be held to create even more value for its investors if the pharma giant does indeed spin off this portion of the business.
Many investors will agree that 2018 was a wipe-out with algorithms causing chaos. As computers tried to find value, prompting never-before-seen swings, human investors were left counting the cost.
But there’s good news on the horizon as 2019 has the potential of decent returns for investors’ hard-earned cash.
Spinoffs and special situations, a niche of The Edge Consulting Group, are ripe for the picking, offering little-known low hanging fruit that can boost your portfolio big time.
By Drew Singer / Bloomberg News:
Large industrial, technology and healthcare firms could soon explore spinoffs to unload debt and stave off activists, according to a special situations research firm.
Elliott Management’s recommendation this morning for eBay to review its portfolio could be the first of many similar calls to action by activists in 2019. Other top candidates to divest non-core assets include AT&T Inc., Oracle Corp., Merck & Co. Inc. and Roper Technologies Inc., The Edge Consulting Group CEO Jim Osman said in an interview. The need for divestitures comes after a rush of acquisitions created heavy debt burdens and higher capital demands.