Latest research

The Ensign Group, Inc. (ENSG) will complete the Spinoff of a uniquely positioned senior living and home hospice business (to be called The Pennant Group, Inc. (PNTG)) at the beginning of October, following the same playbook as a previous REIT Spin back in 2014. While PNTG will experience some initial index selling pressure as it leaves the S&P SmallCap 600 Index, it will also be a high-margin, low leverage, and asset-light business prime for a mid-term takeover in a competitive space.
11 Sep 2019
Having only just completed a Spinoff in March (which has returned +30% to date), Naspers Ltd (NPN SJ) will perform another break-up next week with the listing of Prosus NV (PRX NA), the largest consumer internet business in Europe comprised mainly of NPN's 31% stake in Chinese internet giant Tencent. In a unique offering, NPN is allowing investors to elect not to receive Spinoff shares and instead increase their holding in the Parent, but our analysis shows benefits in participating in the Spin.
06 Sep 2019
Back in 2008, Dish Network Corp. (DISH) was Spun off from Parent EchoStar Corp. (SATS). In that transaction, DISH became a standalone cable broadcasting business while SATS continued to operate the satellites used by DISH and other partners, as well as the high-growth Hughes satellite internet business. Now, over a decade later, DISH will regain direct control of its nine satellites in a Reverse Morris Trust, leaving SATS with two leasable satellites and the Hughes segment.
30 Aug 2019
A series of poor earnings, the abrupt retirement of chief trader Brian Thomsen, and unsuccessful takeover approaches in the past have all prompted a strategic review (announced in October 2018) at Bunge Ltd (BG), one of the top four players in the agribusiness and food industry. Other factors at play include the presence of activist investors Continental Grain Co. and DE Shaw, a new CEO and completely new board of directors, a string of insider purchases, and a potential separation on the table.
14 Aug 2019
With Eaton Corp’s (ETN) pursuit to Spinoff its Lighting business by the end of this year, analyzing previous deals, we anticipate this transaction to show similar dynamics to other S&P 500 listed break-ups. This gives investors a helpful blueprint of how both the Parent and the SpinCo can react in the initial stages of the Spinoff. Having made certain assumptions ahead of the prospectus release (as debt transfer will be a key factor), we add ETN to our current watchlist.
08 Aug 2019
After a messy end to a successful 19-year partnership with billionaire magnate John Fredriksen in 2014, the Chairman of Golar LNG Ltd (GLNG) has created billions of dollars since then and is now looking to penetrate into the entire supply chain of liquefied natural gas (LNG). GLNG will achieve this by removing its highly volatile shipping assets as well as debt to create a strong long-term RemainCo in this fast growing space.
19 Jul 2019