Latest research

The French Government's privatization of state lottery company Francaise des Jeux (FDJ) will see approximately 52% of shares offered to retail and institutional investors between November 7 and November 20, with the first day of public trading on November 21, 2019. Our analysis of the situation indicates strong growth in the near-term driven by stable fundamentals, attractive dividend payments, and a long-term exclusivity deal made with the French State. Read on for more details.
11 Nov 2019
After years of operational underperformance by the management of Bed Bath & Beyond, Inc. (BBBY), which translated into diminishing returns for shareholders, a trio of activist investors called for a strategic overhaul in March 2019. After revamping the board in May 2019, our interest turned to the recent hiring of CEO Mark Tritton. Drawing similarities from covering and analyzing successful turnaround stories, we believe there is more to come for BBBY.
11 Nov 2019
With Ingersoll-Rand’s (IR) earnings out tomorrow (Oct 29), we expect the management to give further clarity around its Q1 2020 Reverse Morris Trust transaction with listed Gardner Denver Holdings, Inc. (GDI). With our early analysis (assuming a 1:1 ratio), we’ve explored the pre-Spin opportunity of entering now, possibility of an S&P 500 listing for new GDI as well as our longer-term view in the pure-play Climate space.
28 Oct 2019
In an expansion of a running Special Situations theme in the monthly Event Preview, we chose three ongoing strategic reviews and examined how each is expected to create value for their respective shareholders. In two of the three cases, the same activist investor (Elliott Management Corp.) is pushing for change, though the potential results of each situation will likely vary due to differing dynamics and goals. Read on for more details on these current strategic reviews and our expectations.
22 Oct 2019
In its current form, Associated British Foods Plc (ABF LN) suffers from an extreme dichotomy between its largely commodity-based Grocery, Agriculture, Sugar and Ingredients segments and its high-volume, low-price Retail (Primark) segment. Based on our analysis, the management has done little to maintain value creation over the past few years compared to peers and the Index, and shareholders will benefit from substantial hidden upside if Primark were to be separated from the other businesses.
14 Oct 2019
Following Fluor Corp.'s (FLR) strategic review which completed on September 24, the management highlighted plans to several business segments on the block to refocus on engineering, construction, and maintenance services. However, in the process, they've undervalued the Government segment in their targeted sale price, and we believe there's further value to be had in performing a Spinoff instead. With the right activist-led push, that Spinoff (and resulting upside) can be made a reality.
11 Oct 2019