IAC/InterActiveCorp. (IAC) has completed the distribution of its 80.7% stake in Match Group, Inc. (MTCH) aftermarket on June 30, 2020, resulting in the boost to MTCH's free float (which precludes a potential inclusion on the S&P 500 Index) and the continued execution of IAC's "anti-conglomerate" philosophy when it comes to its investments. We're booking our strong profits in IAC and we recommend investors to continue to hold MTCH for long-term benefits.
02 July 2020
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
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
Both Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS), the new Spinoff companies from Raytheon Technologies Corp. (RTX), beat expectations in their first earnings post-Spin (April 3, 2020) and saw stock price jumps on the days of their releases. CARR and OTIS are resilient in the face of the ongoing pandemic, with sales back to pre-pandemic levels for the former and the latter seeing increased domestic sales. Continue to hold for long-term value creation from these industry leaders.
13 May 2020
Resilient financials and liquidity as well as sustained bookings in the Americas highlighted the positives of Trane Technologies Plc's (TT) earnings that also saw the suspension of guidance and impacted operations due to the Coronavirus pandemic. Bookings were primarily hit in the EMEA and Asia Pacific regions, and the management has opted to not pursue share repurchases in order to conserve its liquidity going forward. We believe TT will see increased traction once the global lockdown eases.
07 May 2020
Following the completion of its simultaneous three-way Spinoff of Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS) and the merger with Raytheon Co. (RTN) to create Raytheon Technologies Corp. (RTX, Parent ex-Spins), the three newly separated companies provided strong returns on a down market day last Friday (April 3). All three entities have long-term value creation opportunities ahead, given their market-leading positions, higher margins and further potential upsides.
06 April 2020
To take advantage of the market's recent movements, we're adding to our position in Trane Technologies Plc (TT). Our fundamentals remain intact for this company, and the market conditions allow for a lower increase level.
24 March 2020
With the upcoming three-way Large Cap Spinoffs at United Technologies Corp. (UTX) on April 3, the new companies Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS) have now listed in the when-issued market and are worth watching at current levels. We've adjusted our post-Spin target prices accordingly given their lower listing prices.
20 March 2020
To take advantage of the market's recent movements, we're adding to our positions in Trane Technologies Plc (TT), Ingersoll Rand, Inc. (IR) and United Technologies Corp. (UTX). Our fundamentals remain intact for these companies, and the market conditions allow for lower increase levels.
12 March 2020
To take advantage of the market's recent movements, we're adding to our positions in IAC/InterActiveCorp. (IAC), The Madison Square Garden Co. (MSG) and United Technologies Corp. (UTX) ahead of their respective Spinoffs. Our fundamentals for these break-ups remain intact (and we are in the process of updating our MSG analysis with the recent Form 10), and warrant increases to their Model Portfolio positions. See the links below for more details and respective analyses/alerts.
10 March 2020