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Alerts
Leading lease-to-own retailer Aaron's, Inc. (AAN) has announced the separation of its branded stores and online portal from its fast-growing leasing partnership segment, Progressive Leasing. This is accompanied by a rejig of the post-Spin management teams, and is expected to close by the end of the year. Progressive was originally acquired in 2014 for $700m and has grown significantly, now accounting for $1.7bn in FY19 revenues (or 54% of total revenue).
05 August 2020
Alerts
We continue to see strong upside in satellite internet provider EchoStar Corp. (SATS) and increase our Model Portfolio holding accordingly. The company has seen increased network demand in this challenging time as more people are staying home due to either lockdown or working from home as a health precaution, and SATS is strategically poised to benefit from this ongoing environment.
05 August 2020
Alerts
Yesterday was the first day of trading following the unique European Spin-Merger between Metso Corp. (MEO1V FH) and Outotec Corp. (OTE1V FH). This transaction created what is now Neles Corp. (NELES FH) and Metso Outotec Corp. (MOCORP FH), and the resulting valuation mismatch provides an opportunity for investors to see value creation for the Spin-merged mining equipment services company. Meanwhile, NELES (Parent) looks fully valued. Read on for more on their first day's performance.
02 July 2020
Alerts
In light of recent market movements and to rebalance the Catalyst Model Portfolio, we have increased on several high conviction names and reduced the weighting of the largest holding in a partial booking of profits. Please see inside the alert for the list of actions taken at the end of today's (June 29) VWAPs.
29 June 2020
Alerts
In order to most effectively communicate our highest conviction ideas to clients and maximize overall performance, we have combined the positions of the Spinoff and Special Situations Model Portfolios, creating the newly unified Catalyst Portfolio. We are also exiting a series of names, details on the full article.
04 June 2020
Alerts
We see strong upside in satellite internet provider EchoStar Corp. (SATS) as the company sees its network demand increased in this challenging time. As more people are staying home due to either lockdown or working from home as a health precaution, the need for reliable data connection is made apparent and SATS' services are seen as critical to sustain the current working environment.
15 May 2020
Alerts
Less than two months since Spinning off EPROB SS on March 23, 2020, Electrolux AB (ELUXB SS) is up +23% versus the OMX 30 index, up +8% during that time. With its 1QFY20 earnings largely in-line with expectations, its strong financial positioning versus peers, we continue to see near-term positives for the company ahead of a longer-term recovery and recommend holding ELUX.
15 May 2020
Alerts
With the suspension of all sporting events and shows, this had an obvious effect on the revenue stream for both MSG Sports Corp. (MSGS) and MSG Entertainment Corp (MSGE). However, with esports the next leg of growth for MSGS and MSGE building the futuristic venue in Las Vegas, The Sphere, we see the current discount to their asset based valuation (MSGS - highly-valued NY Knicks and Rangers and MSGE’s legendary venues) an opportunity for investors to enter.
14 May 2020
Alerts
We are increasing our Spinoff Model Portfolio holding on Synnex Corp. (SNX), given the value creation opportunities presented by the upcoming Spinoff of the Concentrix segment, as well as the strong returns made by the last time Chairman Matthew Miau bought shares on the open market (2018). His buying then yielded a +85% return, and his more recent purchases flagged our attention and entry into the MP on May 1. The below reiterates our main points on this high conviction name.
11 May 2020
Alerts
Bankinter SA (BKT SM), one of the major banks in Spain in operation since 1955, has announced the separation of its successful direct banking segment, Linea Directa Aseguradora. Originally founded as a joint venture with Direct Line Insurance Group Plc (DLG LN) in 1999, it was the first bank in Spain to offer online services and became a wholly-owned subsidiary of BKT in 2009. The business has demonstrated its viability in generating value, so now will become independent to further drive growth.
08 May 2020