One of the Special Situations Model Portfolio's longest-held names, Brighthouse Financial, Inc. (BHF), will now exit the MP. The stock entered via distribution from MetLife, Inc. (MET) in August 2017, and has recently stabilized from a temporary slump caused by a downgrade by two brokerage firms. Though the long-term thesis remains intact, the annuities market still looks weak, which will continue to suppress BHF's stock price in the near-term.
16 Jul 2019
Woolworths Group Ltd (WOW AU), the second-largest publicly listed company in Australia, announced the combination of its Endeavour Drinks Group (liquor) and Australian Leisure & Hospitality Group (hotels & gambling) in preparation to Spin or sell them off. This will separate the recently troubled segments from the Parent's legacy supermarket operations, and is intended to demonstrate a renewed commitment to the company's moral core.
12 Jul 2019
With the support from major shareholders like Europe’s activist fund, Cevian Capital, as well as Finnish state-owned investment company, Solidium Oyj, Metso Corp. (MEO1V FH) and will be combining its Minerals business with Outotec Oyj (OTE1V FH), creating a Spinoff as well. Based on MEO1V’s successful Spinoff 5 years ago, we look forward to further info in the next few months on this Q2 2020 European Spinoff.
11 Jul 2019
A recent strategic insider purchase by a director at ConAgra Brands, Inc. (CAG) with a history of making massive returns on his buys has prompted us to increase our weighting in the company as it continues to optimize the integration of the acquired Pinnacle Foods assets and realize synergies ahead of the management's target. The company has also continued its string of non-core divestments (Wesson, Gelit, Canadian Del Monte), with its next anticipated sale to be its stake in Ardent Mills.
03 Jul 2019
The first day of trading for KAR Auction Services, Inc. (KAR) and its Spinoff IAA, Inc. (IAA) saw net gains for shareholders and an outperformance of the S&P Total Market Cap Index, with those gains extending into yesterday's trading with significant jumps for both companies. That said, there's still more room for growth for both KAR and IAA, with long-term catalysts like the potential separation of the Parent's AFC segment and IAA's superior margin profile and duopoly with Copart, Inc. (CPRT).
02 Jul 2019
Considering the strong increase to Corteva, Inc.'s (CTVA) post-Spin share price and the significant growth at Rafael Holdings, Inc. (RFL) over the course of June (+77% run-up), we're trimming the two largest Special Situations Model Portfolio holdings to book partial profits, while still retaining stakes for future value creation ahead.
01 Jul 2019