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
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
Modern Times Group’s (MTGB SS) recent 1QFY20 earnings came in again lower than expectations. Longer-term, MTGB still has positive catalysts with either the sale or the US listing of its online gaming segment. However, with the potential near-term pressure on the stock and the removal of company guidance for the rest of its FY20E, we’ll be exiting MTGB from our Model Portfolio.
05 May 2020
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
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
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
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
To take advantage of the market's recent movements, we're adding to our positions in IAC/InterActiveCorp. (IAC) and United Technologies Corp. (UTX) ahead of their respective Spinoffs. Our fundamentals for these break-ups remain intact, and warrant increases to their Model Portfolio positions. See the links inside for more details and respective analyses.
28 February 2020