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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
Alerts
Back in 2018, Synnex Corp. (SNX) Chairman Matthew Miau bought $39m worth of shares on the open market, and made +85% returns. The Coronavirus market effect brought the share price back down near his entry levels, and he has now bought another $9m in shares - demonstrating his conviction in the company's performance even as it has delayed its planned Spinoff to the end of 2020. This positive insider buying trend has prompted us to take a pre-Spin entry in the Model Portfolio.
01 May 2020
Alerts
Madison Square Garden Sports Corp. (MSGS, Parent) and Madison Square Garden Entertainment Corp. (MSGE, Spinoff) completed their first day of separated trading yesterday (April 20, 2020), with shareholders of the combined entity seeing a one-day return of +4.4% compared to the S&P 500 Index return of -1.8%. Both companies are trading at discounts to their asset valuations, providing attractive entry levels for investors not yet involved.
21 April 2020
Alerts
Leading into this week's split between Madison Square Garden Sports Corp. (MSGS) and Madison Square Garden Entertainment Corp. (MSGE), which will trade independently post-Spin on Monday, April 20, we see significant upside in the current when-issued trading levels, and recommend investors to take advantage of this opportunity to own two strong brands: the highly-valued Knicks and Rangers sports teams and the legendary MSG venues business. Read on for our updated valuations.
14 April 2020
Alerts
Despite the ongoing selloff in the global markets, Electrolux AB (ELUXB SS) completed the Spinoff of its professional products business Electrolux Professional AB (EPROB SS) yesterday (March 23, 2020). We are positive on the forward outlooks in the mid- to long-term for both of these companies, considering the discounts they trade at relative to their peers and how negatives seem priced-in at current levels. Read on for more.
24 March 2020
Alerts
As markets are moving, The Edge will be increasing positions in the Model Portfolio. Madison Square Garden Co. (MSG), despite the suspension of the NBA season, displays material value at these levels. With a Form 10 just released, we will have a full update on Monday. In the meantime, we add 1% to the Model Portfolio.
12 March 2020