Corteva, Inc. CTVA
In light of recent market movements and to rebalance the Catalyst Model Portfolio, we have increased on several high conviction names and reduced the weighting of the largest holding in a partial booking of profits. Please see inside the alert for the list of actions taken at the end of today's (June 29) VWAPs.
29 June 2020
As the Spinoff space continues to outperform the broader markets, next week we will see two new companies breaking up, Metso Corp. (MEO1V FH) in Finland and IAC/InterActiveCorp (IAC) here in the US. Our updated analysis will be out later this week. Likewise, we explore CTVA, a “Top Insider Buy” idea and the long-term opportunity in the stock. Click here for more.
22 June 2020
After our April 2020 release, Perspecta (PRSP) grabbed the attention of the market last week when activist JANA Partners took a position in the company, citing shares are undervalued and clearing away for a takeover in this Fallen Spinoff idea. The stock jumped +19%. This week, we look at the other two former Spins identified in that release (ACA and CTVA), as well as Metso’s upcoming June 30 break-up. For more, click the link or the PDF attached.
15 June 2020
As the earnings season comes to an end for most, we have updated our valuations of the stock in our Model Portfolio, with a few more left to go. We continue to maintain our conviction call on MSGS and its current discount, along with PRSP and its upcoming earnings this week. PRSP has already given +18% return in less than a month, with more room to go. For a complete look at the earnings releases and our upcoming Special Sits reports, click here.
18 May 2020
This week, we continue to highlight the most attractive insider purchases with a potential catalyst. Synnex Corp. (SNX), which will Spinoff its top two global customer experience solutions business by Q4 2020 witnessed a key insider buying for only the second time in 20 years. Likewise, Perspecta (PRSP), as it nears its 2-year tax-free mark after earnings, saw an insider who has been proven right in the past buy as well. For more and all the earnings releases, click here.
11 May 2020
This week, we review the most attractive insider purchases on the market, which have an upcoming catalyst (SNX and PRSP) as well as highlight forgotten IPO-Spinoff, BellRing Brands (BRBR), ahead of our impending analysis and its upcoming distribution. Not only that, click inside for our ‘King of the Activists’ Study, with the aim to pair the insights from the study to find value creation opportunities.
04 May 2020
Last week’s +20% jump in recent Spinoff Madison Square Garden Entertainment (MSGE) helped narrow some of the discount to its asset value but both MSGE and its Parent (MSGS) continue to trade at attractive levels. Likewise, we’ve identified our top insider buy signals ahead of their earnings, featuring a 2019 high conviction stock of ours primed for another bite at the cherry. Click here.
27 April 2020
Through screening and identifying positive insider buying patterns and how this may indicate future returns, we’ve picked our top three previous Spinoffs that have the strongest signal to outperform in the months to come. With an opportunity to enter at lower levels than the insiders themselves ahead of their earnings coming up shortly, click here for our analysis on our current top 3 situations.
21 April 2020
The ongoing situation with COVID-19 (coronavirus) has impacted the markets and caused a broad sell-off, including on many of our Model Portfolio names. We have reevaluated each stock in the MP with regard to how the outbreak impacts our expectations and target prices, and provide those updates inside.
16 March 2020
As markets are moving, The Edge will be increasing positions in the Model Portfolio. We believe The Cheesecake Factory, Inc. (CAKE) and Corteva, Inc. (CTVA) are fundamentally undervalued and the recent market movement allows for lower levels to average into the stocks.
12 March 2020