Last week witnessed strong insider buying into a forgotten John Malone split-off (LILA), newly announced Spinoffs added to the calendar (TIVO and ENSG) as well as Alerts on the upcoming Spinoff of VF Corp (VFC) and Kontoor Brands, Inc. (KTB) this week. Due to the amount of index selling, we expect weakness in KTB post-Spin, and investors should judge their involvement based on our valuations. Click here for more.
20 May 2019
As Spinoffs are coming back into favor from their low enthusiasm in 2018, this creates great opportunities ahead. Areas of interest are the upcoming Spinoffs (KTB and CTVA), fallen Spinoffs (such as CARS) and our recent proprietary data, which highlights that Large Cap Spinoffs show a +55% absolute return (three Spinoffs in question – ATUS, DOW and FOXA). Click here for more.
13 May 2019
In our release “Invest in Large Cap Spinoffs for Value,” we’ve identified all the US large cap Spins in the last 10 years, their 2-Year performance as well as what names are ahead. This study was conducted from data in this week’s Spinoff Screener.
10 May 2019
This week will be packed with earnings, when-issued trading and investor meetings for our stocks of interest. When-issued trading for Kontoor Brands (KTB – Spinoff of VF Corp) is expected to begin on or about May 9th, while Corteva (CTVA) will also be hosting an Investor Day on the same day, with the anticipation of receiving the distribution ratio for the Spin. Likewise, Modern Times (MTGB SS), Resideo Tech (REZI) and Wyndham Hotels (WH) have earnings this week. Analysis on CNDT out shortly.
06 May 2019
The Spinoff space continues to grow! From the Screener, 10 companies were added in April. For the month of May, VF Corp (VFC) will be spinning off its denim Jeanswear business, Kontoor Brands (KTB) by May 23. Also, there have been 3 new additions to the calendar such as Ingersoll-Rand (IR), Archer Daniels (ADM) and GrainCorp (GNC AU). As we cover these upcoming names, we’re currently looking through the Screener for the next “fallen” or “forgotten” Spinoff to create returns. More out shortly.
03 May 2019
Having first indicated at the beginning of April that the end of May could be its Spinoff, it is being hinted in the market that May 23 could be the official Spinoff Date for VF Corp (VFC). Whether this is true or not, we at The Edge have begun looking for value in this break-up. Other names guided for a Q2 2019 break-up are Brunswick (BC), KAR Auctions (KAR), The Madison Square Garden Co. (MSG) and DowDuPont (DWDP).
29 Apr 2019