In November 2018, United Technologies Corp. (UTX) announced a three-way Spinoff of its Otis Elevators and Carrier Climate Control businesses, now expected to be completed in April 2020. Our data on large-cap Spinoffs indicate this is a rare transaction and should not be ignored. This break-up (and parallel merger with Raytheon Co. (RTN)) will create three market-leading companies in their respective industries with long-term cash flow visibilty.
23 Jan 2020
Once touted in 2017 by activist investor, Third Point, that DowDuPont should be split into six different companies to create a ‘clear focus and compelling investment case’ for shareholders, DuPont (DD) has not slowed down since its Spinoff of DOW and CTVA last year. Now, with the Reverse Morris Trust of its Nutrition & Biosciences segment as well as a strategic review of its Electronics and Imaging business, a six-way split when it’s all said and done may not be out of the realm of possibility.
21 Jan 2020
Provider of technology distribution services Synnex Corp. (SNX) announced it will separate its Concentrix segment into a newly listed company, stating the customer experience provider is strong enough now to stand independently and boost its scale and competitiveness. Meanwhile, SNX (Parent post-Spin) will pursue organic growth (with new products and services planned) and strategic acquisitions to focus on the core business.
16 Jan 2020
A director on ConAgra Brands, Inc.'s (CAG) board made two open market purchases over the New Year (Dec 31 and Jan 2) totaling 40,000 shares and increasing his stake by +114%. We previously examined his first ever open market purchase in CAG back in July, from which he made +28% returns to the date of his new purchases. In that July 2019 alert we noted his history of strong returns from his investments, and the trend continues in CAG now. Time to follow this smart insider again.
15 Jan 2020
Value investing is dead and The Edge Group is predicting the Catalyst Space as the new trend for 2020. The Edge Group LLC, the global leader in Catalyst, Special Situations and Spinoff research, has acquired substantially all of the assets of WhiteSand Research LLC, offering money managers even greater access to unique market intelligence in the niche Catalyst, Special Situations and Spinoff space.
14 Jan 2020
Over the last five years, Canadian Solar, Inc. (CSIQ) has underperformed compared to the S&P 500 Index, with a return of +8% compared to the S&P 500 Index’s +62%. Following several unsuccessful pursuits of value creation through a previous attempted Spinoff and failed effort to go private, CSIQ is back to reconsidering a broad range of value-enhancing strategic alternatives for its Modules & Systems Solutions (MSS) and Energy businesses. We lay out a case for a Spinoff of the MSS segment.
10 Jan 2020