For those who missed last week’s high conviction idea call, MSG Entertainment (MSGE) continues to present a significant opportunity at current levels. Even with the market completely discounting the future of entertainment with The Sphere in Las Vegas – MSGE still shows upside and is a strong long-term investment. Likewise, a company that was pushed to break-up over 10 years ago, which would have been too small and too leverage is now at the right size for a split. Click here for more.
03 Aug 2020
One of the biggest winners on the 2020 Spinoff calendar is Carrier Global (CARR), up +95% since its April split. The entire market at the time was awaiting for this large cap break-up from United Technologies (UTX) and pre-Spin was the best way to play this iconic split. Another iconic split is coming up, this time in Europe. With the Spinoff space up so far up +22% YTD, Siemens (SIE GY) is the next large cap break-up to watch out for by the end of Sep 2020. For more Spinoff winners, click here.
31 Jul 2020
MSG Entertainment (MSGE) is providing another chance to invest in the future of entertainment with its Sphere in Las Vegas - and MSGE is our current high conviction call on this long-term catalyst. Investors in MSG would do anything to have been involved in its inception, given the value it's created to date. Get in now before the venues come back online and MSGE's valuation discount narrows, and read on for more of our upcoming ideas.
27 Jul 2020
In the US, we speak about the 2-year tax-free rule and our weekly Spinoff Screener monitors when that date is coming up. In Europe however, that takeover rule does not exist. Only a few weeks into its trading, Neles Corp. (NELES FH), which Spun off Metso Outotec (MOCORP FH) on July 1, 2020, was bid for by Alfa Laval AB, a Swedish public limited liability company, representing a 32% premium. Other takeover candidate on our watchlist is Perspecta (PRSP).
24 Jul 2020
The stock price of Metso Outotec (MOCORP FH) has moved up close to 10% since last week’s Idea Generator and we believe there is still time to get involved. We also explore the attractive position Electronic Arts (EA) finds itself in as it continues to leverage on the growth potential in the gaming space and as e-sports, which continue to gain traction in the market. Lastly, the largest Spinoff is Europe is coming up two months from now. To learn more, click the link below or the PDF attached.
20 Jul 2020
25% of the scheduled Spinoffs on the calendar (7 out of a total 28) have prior experience with break-ups, being either Parents or Spins themselves in the past 10 years. These are also value creators, with an average +6% in their first year and +55% total average returns following their Spins. Compare how these companies on the calendar have performed using the attached Screener, with data updated weekly.
17 Jul 2020