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
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
In its earnings report last week (January 31), Electrolux AB (ELUXB SS) disclosed a critical element of the upcoming Electrolux Professional Spinoff in March, namely the debt it will transfer to the new company as part of the separation. We also expect the Spinoff to improve the Parent's EBITDA margins, and for the Spinoff to take advantage of inorganic growth opportunities once out from under the current conglomerate structure. Read on for more on the company's earnings and Spin details.
06 February 2020
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
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
Here are the latest calendars to download for what’s coming up in 2020: • 35 Spinoffs for 2020 and Beyond – Latest Spinoff Calendar (click here); • 8 Potential Break-Ups – Latest Special Situations Calendar (click here);
24 December 2019
The Wallenberg family's successful Spinoff at Atlas Copco AB (ATCOA SS) of Epiroc AB (EPIA SS) outperformed the OMX Stockholm Index return of +11% with returns of +28% and +27%, respectively. Now, only a year and a half later, the family is pushing for the break-up of their ninth-largest holding, Electrolux AB (ELUXB SS) and its Professional segment. We believe there are factors at play in this upcoming split that indicate similar success - read on for our thoughts.
11 December 2019
As part of a larger internal reorganization, Madrid-based telecommunications player Telefonica SA (TEF SM) announced its plan to Spinoff all of the Latin American operations excluding Brazil, the latter of which (alongside Spain, United Kingdom, and Germany) over 80% of total company revenues. The Spinoff will unify the disparate Latin American operations (including Argentina, Chile, Peru, Colombia, Mexico, Venezuela, Ecuador and Uruguay) into one listed unit.
02 December 2019
Back in August 2018, Continental AG (CON GY) announced its plans to perform an IPO-Spin of its Powertrain business to help the German automaker’s market position from slipping further. However, as the automotive industry is pressured to adapt, CON shifted its plan to that of a pure Spinoff (to be called Vitesco Technologies) rather than the IPO-Spin originally proposed. This automotive Spinoff joins several others previously completed in the past couple years, as well as two more coming up.
25 November 2019
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