Spinoffs are significantly outperforming this year, as seen on our Spinoff Screener. If you bought all 13 new global companies created via the break-up in 2020, investors are up +18%. If you only invested in US Parents and Spinoffs (9 companies), shareholders are up +7% versus a down S&P market YTD. For more opportunities in this space, Barry Diller’s IAC (track record of creating successful Spins) will be coming up with its Spinoff at the end of June.
29 May 2020
Our client partners have made +25% return since our recommendation to enter SNX on May 1, 2020. Following the smart insider (who only bought for the 2nd time in 20 years), SNX has more upside to go ahead of its Spinoff. Another name in our portfolio we continue to promote that has not moved up as quickly as SNX is BG, with its 14 insider cluster buys and what this could mean going forward. Click here for these names and more.
26 May 2020
As revenues shrink but company debt remains due to the pandemic, our focus for ideas in the Spinoff Screener is honed in to good defensive businesses with little or no debt, quality management and ideally an upcoming catalyst. One of the stand outs of the former Spins list is Perspecta (PRSP), who has a CEO with M&A history and an intriguing relationship with its top shareholder, a smart insider buying shares again and coming up to its 2-year tax-free rule.
22 May 2020
As the earnings season comes to an end for most, we have updated our valuations of the stock in our Model Portfolio, with a few more left to go. We continue to maintain our conviction call on MSGS and its current discount, along with PRSP and its upcoming earnings this week. PRSP has already given +18% return in less than a month, with more room to go. For a complete look at the earnings releases and our upcoming Special Sits reports, click here.
18 May 2020
The weekly Spinoff Screener is the best way to watch for lower levels on high conviction names – for example, Madison Square Garden Sports Corp. (MSGS) is trading slightly down from its Spin level, meaning you can get into this trophy asset play at an attractive level.
15 May 2020
This week, we continue to highlight the most attractive insider purchases with a potential catalyst. Synnex Corp. (SNX), which will Spinoff its top two global customer experience solutions business by Q4 2020 witnessed a key insider buying for only the second time in 20 years. Likewise, Perspecta (PRSP), as it nears its 2-year tax-free mark after earnings, saw an insider who has been proven right in the past buy as well. For more and all the earnings releases, click here.
11 May 2020