In January 2020, we highlighted Canadian Solar, Inc.’s (CSIQ) strategic review for the split between its solar panel manufacturing and energy services segments, and our belief in further value in listing the former in China. As of July 27, the company has concluded this strategic review with an IPO of the MSS segment on the Chinese markets. Our previous valuation anticipated a Spinoff of MSS, so we have updated it to reflect the new strategy.
30 July 2020
Significant cluster open market purchases made by insiders at Bunge Ltd (BG) prompted an entry into the Model Portfolio on April 9, 2020, with other factors involved as well (new CEO, potential Spinoff, activist involvement). The confidence of the management, coupled with the temporary nature of the hits taken due to the ongoing Coronavirus pandemic, indicate to us BG will be able to recover and recommend increasing at these levels.
07 May 2020
Given the current retail environment and widespread pandemic quarantine practices across the country, Bed Bath & Beyond, Inc. (BBBY) has seen a hit to its turnaround efforts, though this has been offset by a growing digital presence and increased cash balance. The turnaround plan is still on track to be delivered by CEO Mark Tritton by next month (May 2020), and we see the sharp decline in share price as a strong opportunity to accumulate BBBY ahead of its execution.
22 April 2020
To take advantage of the market's recent movements, we're adding to our positions in Bed Bath & Beyond, Inc. (BBBY), Canadian Solar, Inc. (CSIQ) and Fox Corp. (FOXA) on their fundamentals that remain intact. These companies' current levels now warrant increases to their Model Portfolio positions. See the links below for more details and respective analyses/alerts.
10 March 2020
We are exiting several names from the Special Situations Model Portfolio as we look ahead at more compelling idea flow in 2020. Watch for our Special Situations Event Preview (released at the beginning of each month) for the ideas we're examining in this dynamic space, and the Upcoming Spinoff Calendars for more on the scheduled catalysts ahead.
25 February 2020
Improving operations takes time, and Bed Bath & Beyond, Inc.'s (BBBY) continued efforts are no exception. Having brought on turnaround specialist Mark Tritton to right the ship, the company is making strides in improving its digital sales and is set to release its full turnaround plan in the Spring. In an interim update ahead of its Q4FY19 earnings (April 15, 2020), BBBY has revealed pressure on its revenue coming out of the holiday season, which provides a buy opportunity at lower levels.
12 February 2020
Over the last five years, Canadian Solar, Inc. (CSIQ) has underperformed compared to the S&P 500 Index, with a return of +8% compared to the S&P 500 Index’s +62%. Following several unsuccessful pursuits of value creation through a previous attempted Spinoff and failed effort to go private, CSIQ is back to reconsidering a broad range of value-enhancing strategic alternatives for its Modules & Systems Solutions (MSS) and Energy businesses. We lay out a case for a Spinoff of the MSS segment.
10 January 2020
A revamped board and new CEO were the first steps taken by a trio of activists in early 2019 when they began the turnaround at specialty retailer Bed Bath & Beyond, Inc. (BBBY). Our investment thesis centers around this industry veteran CEO's track record (similar to our previous calls on Brink's Co. (BCO) and Tableau Software, Inc. (DATA), with further details in our full analysis. The price drop from yesterday's earnings provides another buy level for this turnaround in action.
09 January 2020
Amazon, Inc. (AMZN) is in a prime position to make a bid for eBay, Inc. (EBAY) in 2020 (and can afford to do so in cash) after a decade which saw the departure of two CEO’s forced out by activist giants. According to analysis of potential synergies from The Edge (who source under-performing companies for activist involvement, Special Situations and Spinoffs), eBay has had more than its fair share of outsider intervention since it bought PayPal, Inc. (PYPL) in August 2002 for $1.5 billion.
31 December 2019
There's a potential stock crisis brewing that could offer up a nightmare before Christmas, despite historic US spending records on Black Friday and Cyber Monday. That’s according to The Edge after their analysis of retail sales over Black Friday and Cyber Monday confirmed the polarization of high-end and low-end retailers. All eyes will be on the major retail stocks as investors tentatively creep toward Christmas Eve trading following last year's crash.
17 December 2019