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Full Analysis
Our previous Fallen Spinoff analysis (July 2019) saw value creation in Perspecta, Inc. (PRSP), and our entry recommendation at $23.70 rallied to its pre-pandemic high of $29.50 in February 2020 (a +25% return, now back to our recommendation levels dropping with the market). Our newest screening process yielded KAR Auction Services, Inc. (KAR), which we believe has several catalysts for growth and will create value in the post-pandemic used auto auctions space.
28 May 2020
Full Analysis
Value creation comes in many forms in the Special Situations space, and often companies need a friendly (or not-so-friendly) push from activist investors in the “right direction” to achieve shareholder returns. We took ten of the major US activist firms and examined the positions taken over the last 15 years to determine who is King of the Activists in terms of absolute (buy on date of entry and hold for two years) overall returns and compared to their respective market cap and sector indices.
27 April 2020
Full Analysis
To inform our analysis into finding the next value ideas in this current market environment, we started by examining the sectors that outperformed the S&P 500 Index following the 2008 financial crisis (recovery started on March 2, 2009). The data shows six sectors (out of the total 11) that have consistently outperformed the S&P 500 Index in the five years after the recovery. We have narrowed down to three names (one European and two US) that are worth buying at current levels.
25 March 2020
Full Analysis
The Cheesecake Factory, Inc. (CAKE), the upscale dining chain known for its large menu and strong brand value, is an interesting situation the market loves yet continues to underperform peers. However, with the recent addition to its Board of Directors of a sell-side restaurant research analyst, we believe activism is beginning to influence the company. JANA Partners has also been exploring the sale of peer Bloomin' Brands. On our valuation and potential activism, it's a good time to enter CAKE.
05 March 2020
Full Analysis
The French Government's privatization of state lottery company Francaise des Jeux (FDJ) will see approximately 52% of shares offered to retail and institutional investors between November 7 and November 20, with the first day of public trading on November 21, 2019. Our analysis of the situation indicates strong growth in the near-term driven by stable fundamentals, attractive dividend payments, and a long-term exclusivity deal made with the French State. Read on for more details.
11 November 2019
Full Analysis
After years of operational underperformance by the management of Bed Bath & Beyond, Inc. (BBBY), which translated into diminishing returns for shareholders, a trio of activist investors called for a strategic overhaul in March 2019. After revamping the board in May 2019, our interest turned to the recent hiring of CEO Mark Tritton. Drawing similarities from covering and analyzing successful turnaround stories, we believe there is more to come for BBBY.
11 November 2019
Full Analysis
Following the Spin-merger of its Entertainment assets to The Walt Disney Co. (DIS) in March 2019, Fox Corp. (FOXA) has underperformed the S&P 500 Index by 8.7% and its peers Comcast Corp. (CMCSA) and CBS Corp. (CBS) by 14.3% and 4.1%, respectively - but there are many positives behind the leading sports and news broadcaster that we expect will bring the company to value (including a long-term takeover play). Click inside for our valuations on both a Base and takeover cases.
25 June 2019
Full Analysis
In operation for over 20 years and a commanding presence in the US with close to 50% of the total automotive US dealers as their customers, we believe that Cars.com, Inc. (CARS) is a strong candidate for your portfolio at current levels as the company is on the verge of a reversal when it exits its 2-Year Tax-Free trading status this week. Click inside for more.
29 May 2019
Full Analysis
The upcoming situation will see the mega-merger of Twenty-First Century Fox, Inc.'s (FOXA) entertainment assets with The Walt Disney Co. (DIS), resulting in a powerhouse of content creation and distribution. Alongside this, and prompted by a bevy of international regulatory conditions, FOXA must Spinoff its Sports & News segment into Fox Corp. (FOX), which we believe is a takeover target in the long-term for any larger media company looking for more broadcasting exposure.
18 March 2019
Full Analysis
Removal of Tracking Status This Monday (Mar 12th), What's John Malone's Next Move? Make CHTR a Quad-Play Service Provided and GLIBA is Likely Part of that Plan
09 March 2018