Following last week’s highlight on average 1-year returns in Q1 Spinoffs outperforming the other quarters, the data in our weekly Screener also allows for drilling down into regional returns. With six global Spins scheduled for the quarter, which region provided the strongest 1-year returns in Q1 over the last decade? Turns out, the US doubled Europe’s performance (+20% vs 10%) and Global names hitting -2% on average. Three of the Q1 Spins are scheduled in the US and worth a further look.
17 Jan 2020
This week, we have two new ideas that have entered our Model Portfolio. The first is an upcoming Swedish Spinoff, Electrolux AB (ELUXB SS), which saw a one-off blip to its share price providing an entry point pre-Spin and Ontario’s Canadian Solar (NASDAQ: CSIQ) as a Special Situation providing strong upside and showing the company is worth more broken up. Also, click inside to see what’s coming up.
14 Jan 2020
In examining this week’s Screener for average 1-year performances of Spinoffs, we found that the break-ups performed in Q1 over the past 10 years have provided the best average returns in their first year of trading at 16.6%. With 20% of the Upcoming Spinoffs Calendar confirmed to go through in Q1 (examples include MSG, ELUXB SS and GNC AU), there is no better time to be looking at the space than now.
10 Jan 2020
Textron's (TXT) upcoming earnings results on January 29 may see a break-up announcement (similar to our calls on Marathon Petroleum (MPC) and Nielsen Holdings (NLSN) resulting in their Spinoff announcements), and three major defense stocks we highlighted in October saw stock prices pop on the news of the drone strike on Iranian General Soleimani and the increased tensions between the United States and Iran. Read on for more on these names and the analysis coming up.
07 Jan 2020
A set of names to watch in 2020 are companies with experience in performing break-ups (or former Spinoffs themselves) and have maintained positive performances since. These include Arconic (ARNC), Ingersoll-Rand (IR), Madison Square Garden Co. (MSG), Fortive Corp. (FTV) and Marathon Petroleum Corp. (MPC). All five of these names have their own Spinoffs planned in the next year, and are worth a closer look. Click inside for more like these.
27 Dec 2019
An idea that stands out from our watchlist after this week’s merger reveal is nVent (NVT – HBB as a potential acquirer) as it comes up to their 2-Year Rule. Apergy (APY) jumped +6% on a tax-free merger announcement yesterday. APY was a takeover target idea from our April 2018 analysis when it was Spun off from Dover (DOV). APY will merge with Ecolab’s (ECL – on this month’s US Spinoff Calendars) Energy Spinoff by Q2 2020, keeping within the 2-Year Rule. Click inside for this week’s Screener.
20 Dec 2019