In our continued efforts to find fundamentally sound companies that offer a value buy proposition from where these businesses are trading at today, The Edge have analyzed the current database of previous Global Spinoffs over the last few years creating several custom screening criteria. As a result of this screening, we’ve identified Perspecta, Inc. (PRSP) as a “Fallen Spinoff” worth looking at, having shown a recovery as the market begins to recognize the positives head to this story.
16 Jul 2019
Covetrus, Inc. (CVET), the leading pure-play animal health distribution company with a global presence, is -45% down from its listing in February 2019 (counter to its peers, which are all either flat or up in the same period) – but with several positives ahead, we believe CVET is a medium risk investment at current levels with significant room to grow.
09 Jul 2019
Since its November 19, 2018 announcement, the stock price of Nuance Communications, Inc. (NUAN) has remained at the same $16 level. However, NUAN (the leader in conversational AI innovations) has been pushing forward with selling its non-core assets (like its Imaging business and its Subscription Revenue Services business) in order to help reduce its debt. Ahead of releasing its prospectus, small-cap investors should start evaluating this opportunity.
08 Jul 2019
Following the Spin-merger of its Entertainment assets to The Walt Disney Co. (DIS) in March 2019, Fox Corp. (FOXA) has underperformed the S&P 500 Index by 8.7% and its peers Comcast Corp. (CMCSA) and CBS Corp. (CBS) by 14.3% and 4.1%, respectively - but there are many positives behind the leading sports and news broadcaster that we expect will bring the company to value (including a long-term takeover play). Click inside for our valuations on both a Base and takeover cases.
25 Jun 2019
Delayed from its Q1 2019 targeted Spinoff timing by the US government shutdown, KAR Auction Services, Inc. (KAR) is set to separate Insurance Auto Auctions, Inc. (IAA) on June 28, 2019. This is the first ever Spinoff in the field of salvaged auto auctions, and will create a pure-play insurance auction company with superior EBITDA margins compared to KAR's ADESA segment. The Spin looks fairly valued in when-issued trading, but there is significant upside in the Parent ex-Spin.
19 Jun 2019
With the NBA basketball finals coming to an end last night (congrats to the Toronto Raptors), the sporting world turns their attention to what’s happening in NYC at Madison Square Garden (MSG). While fans look to see if James Dolan will fail (again) to bring a marquee player to the Knicks this summer, we’ve analyzed MSG and its upcoming Spinoff of its trophy sporting assets. Don’t wait for the first Form-10, it’s time to get in now pre-Spin as the Spinoff is not the only option being explored.
14 Jun 2019