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Today marked the first day of regular trading for Graincorp Ltd (GNC AU) and its Spinoff United Malt Group Ltd (UMG AU) after trading on a when-issued basis since March 26. We believe this separation paves the way to higher valuations for either company as they seek being taken over by larger players, though until that comes through they will continue to operate as leaders in their respective industries. Read on for more details on the value created on their first regular day of trading.
02 April 2020
Alerts
Yesterday (April 1, 2020) marked the first day of regular trading for the newly-separated Howmet Aerospace, Inc. (HWM, formerly Arconic, Inc. - ARNC) and Arconic Corp. (ARNC, Spinoff). The Parent previously made the same move to give its 2016 Spinoff its name and ticker (Alcoa Corp. - AA), resulting in significant market confusion, now being replicated with this new split. We are positive on HWM post-Spin's potential, and recommend looking for lower levels for entry into either entity.
02 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
While Modern Times Group MTG AB (MTGB SS) saw a -3% drop the day after its Q4FY19 and FY19 earnings report on February 6, 2020, the company still has positive catalysts ahead. The earnings drop was primarily due to a fallen-through partnership with Tencent-backed Huya, Inc. (China's game stream leader); however, two potential catalysts for MTGB include a US listing (which the management has been mulling over) and the sale of the online gaming segment. Read on for more.
10 February 2020
Alerts
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
Cerence, Inc. (CRNC) posted strong results in first earnings following the separation from Parent company Nuance Communications, Inc. (NUAN), beating the consensus and its own guidance. The number of vehicles shipped that incorporated CRNC technology increased in FY19 over the previous year, and the company's strength looks to continue moving forward with all-time high revenues and backlogs. The stock has returned over 32% from The Edge's adjusted buy price, prompting an exit.
30 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
Alongside its Q3FY19 earnings results on October 29, Modern Times Group AB (MTGB SS) announced the initiation of a strategic review of its gaming vertical, potentially leading to an additional listing in the United States (currently one of the biggest e-sports markets in the world). This would be the first pure-play e-sports business listed in the United States and widen the gap between MTGB and its peers in the space. Meanwhile, the anticipated launch of 5G will bring in additional revenue.
15 November 2019
Alerts
The Edge is holding its third annual conference at The Penn Club in NYC on Thursday, November 21, 2019. This non-profit conference has limited space and is always full. The conference is free to attend with a donation, 100% of which goes to The Alzheimer's Association. So far we have raised nearly $11,000 from previous conferences. The Edge will bring together experienced investment professionals, each bringing their views on how to make the most of this undercovered area.
30 October 2019