After its mispriced listing last week via the combination of Metso’s Minerals business and mining and minerals company, Outotec Corp. (OTE1V FH), leading player MOCORP is trading at a significant discount to its peers right now less than a week in trading. We believe it’s just a matter of time before the market picks up on this and hits our +50% Base Case. For more on MOCORP and our “Pick of the Fallen Spins”, click either the link or the PDF attached to this email.
06 July 2020
This is the week! While a shorter week for the US markets, two Spinoffs will begin their first day of trading this Wednesday (July 1). The anticipated value creation split in Barry Diller’s IAC/InterActiveCorp (IAC) and Finland’s Metso Corp. (MEO1V FH). We recommend new investors to buy IAC (and current investors to hold) and to wait for a better entry point in Metso post-Spin. For more on each situation, click the link below or the PDF attached to this email.
29 June 2020
As the Spinoff space continues to outperform the broader markets, next week we will see two new companies breaking up, Metso Corp. (MEO1V FH) in Finland and IAC/InterActiveCorp (IAC) here in the US. Our updated analysis will be out later this week. Likewise, we explore CTVA, a “Top Insider Buy” idea and the long-term opportunity in the stock. Click here for more.
22 June 2020
After our April 2020 release, Perspecta (PRSP) grabbed the attention of the market last week when activist JANA Partners took a position in the company, citing shares are undervalued and clearing away for a takeover in this Fallen Spinoff idea. The stock jumped +19%. This week, we look at the other two former Spins identified in that release (ACA and CTVA), as well as Metso’s upcoming June 30 break-up. For more, click the link or the PDF attached.
15 June 2020
For those who missed our recently released analysis on HD Supply Holdings (HDS), we revisit this upcoming Spinoff and its history of value creation via divesting non-core assets since it was listed back in 2013. Likewise, Fallen Spinoff idea KAR is already up +18% since our entry recommendation on May 28 and believe has several catalysts for growth post-pandemic. Click here for more.
08 June 2020
Today (Apr 20) is the first day of trading for both Madison Square Garden Sports (Parent – MSGS) and Madison Square Garden Entertainment (Spinoff – MSGE) and both stocks opened at compelling levels compared to their total asset base, with the Sports asset value of $5.9bn (MSGS) and the Venue asset value of $3.8bn (MSGE). Click here for this and the current environment around insider buys.
20 April 2020
This week, we examine more on the current opportunity in IAC/InterActiveCorp (IAC) as the CEO explains its cash position ahead the upcoming Spinoff of MTCH as well as Bunge (BG) and its 14 insider cluster buys and what this could mean for the company going forward. Also a reminder, Madison Square Garden (MSG) trades when-issued this week ahead of its long awaited break-up (MSGS-w and MSGE-w).
13 April 2020
For those who missed the recent release of the Idea Generator, please see the attached PDF. With our coverage of all three Spinoffs last week (GNC AU in Australia, HWM and ARNC as well as the 3-way split of RTX, CARR and OTIS), this week we’ve included our outlook on MSG’s Spinoff coming up in two weeks as well as where we’re finding value among insider buys.
07 April 2020
With our coverage of all three Spinoffs last week (GNC AU in Australia, HWM and ARNC as well as the 3-way split of RTX, CARR and OTIS), this week we’ve included our outlook on MSG’s Spinoff coming up in two weeks as well as where we’re finding value among insider buys. Click here for more.
06 April 2020
In preparation of this week’s catalyst events in the Spinoff space (GNC AU in Australia, HWM and ARNC as well as the 3-way split of UTX, CARR and OTIS), we’ve highlighted and identified where we see an opportunity in each situation ahead of first day of trading. Click here for these ideas and our 3 large cap value names to look at today.
30 March 2020