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Value investing is dead and The Edge Group is predicting the Catalyst Space as the new trend for 2020. The Edge Group LLC, the global leader in Catalyst, Special Situations and Spinoff research, has acquired substantially all of the assets of WhiteSand Research LLC, offering money managers even greater access to unique market intelligence in the niche Catalyst, Special Situations and Spinoff space.
14 January 2020
Alerts
This exclusive conference hosted the best of the investing world on Thursday, November 21, with The Edge bringing several premier money managers to present their current ideas in the Special Situations space and updated US performance data from The Edge’s own research team. $5,000 was raised through the event and given to The Alzheimer’s Association, all from attendees’ discretionary donations. In total, The Edge's three conferences have raised nearly $16,000 for the Alzheimer's Association.
03 January 2020
Alerts
Danaher Corp. (DHR) structured its exchange offer of the remaining stake in Envista Holdings Corp. (NVST) with a 7% discount in order to entice shareholders to participate - which has worked too well, resulting in the offer being oversubscribed (final numbers to be released next week). Based on our scenario breakdown, the oversubscribed exchange offer with a ratio set at the high end (final ratio of 5.5784), this narrows the discount and potential upside, reducing the offer's attractiveness.
12 December 2019
Alerts
After fending off a shareholder push to remove three board members and separate back in April 2019, Verint Systems, Inc. (VRNT) announced a break-up, a $300m share buyback program and also revealed that private equity firm Apax Partners will be investing up to $200m (both pre and post Spin). VRNT will take a full year before splitting up but further details will be out by April 2020.
12 December 2019
Alerts
After an unexpectedly low open price on its listing day (at $6.15), The Ensign Group, Inc.'s (ENSG) Spinoff of The Pennant Group, Inc. (PNTG) has gone on to return +290% to date, mirroring the successful playbook used in ENSG's previous 2014 Spin of CareTrust REIT, Inc. (CTRE). Following their first earnings since the separation, our valuations indicate the positives resulting from the Spinoff have been priced in, and we therefore recommend booking profits at current levels.
20 November 2019
Alerts
KAR Auction Services, Inc. (KAR) and IAA, Inc. (IAA) have continued their performance divergence since their split in June 2019, with the Spinoff (IAA) demonstrating its strong growth potential while the parent (KAR) has taken hits on its second earnings miss in a row on the back of a $5m inventory loss and lowered guidance. KAR's longer-term catalysts are still intact for those willing to wait, and IAA is expected to continue with its bolt-on acquisitions and partnerships for the near-term.
19 November 2019
Alerts
Between the index play on listing (leaving the S&P 500 for the SmallCap 600) and taking on debt from parent VF Corp. (VFC) as part of the Spinoff transaction, Kontoor Brands, Inc. (KTB) experienced the predicted selling pressure and dropped to below $30 after its break-up in May 2018. Now, supported by several quarters of beating earnings expectations (even taking near-term headwinds to sustain longer-term growth), the stock has rallied +35% from its June 2018 lows.
18 November 2019
Alerts
In its first earnings release since the completion of its Reverse Morris Trust with DISH Network Corp. (DISH), EchoStar Corp. (SATS) has demonstrated the benefits of separating the BSS business and focusing on its more lean Hughes operations. Additional joint ventures in Brazil and Israel have been bolstered with the fresh acquisition of Helios Wire Corp., a satellite-enabled IoT connectivity company with huge potential for SATS.
13 November 2019
Alerts
A complicated international ownership situation will be simplified when SunPower Corp. (SPWR) Spins off its solar power manufacturing business, to be called Maxeon Solar and expected to be separated in Q2 2020. Currently majority-owned by French utilities company Total SA (FP FP), SPWR is a US-based company with manufacturing (Maxeon) in Malaysia and the Philippines and assembly plants in Mexico. The Spinoff will slim the company down to its domestic distribution operations.
12 November 2019
Alerts
Following the Spinoff of its 20% stake in Modern Times Group AB (MTGB SS) in August 2018, Kinnevik AB (KINVB SS) continues its slimming down of the portfolio by divesting its entire 37.2% stake in Millicom International Cellular SA (TIGO) to shareholders through a distribution of Swedish depositary receipts (SDRs), which are then convertible to Millicom shares listed on the NASDAQ. As of yesterday (November 7), the distribution date and ratio have been disclosed.
08 November 2019