Yesterday was the first day of trading following the unique European Spin-Merger between Metso Corp. (MEO1V FH) and Outotec Corp. (OTE1V FH). This transaction created what is now Neles Corp. (NELES FH) and Metso Outotec Corp. (MOCORP FH), and the resulting valuation mismatch provides an opportunity for investors to see value creation for the Spin-merged mining equipment services company. Meanwhile, NELES (Parent) looks fully valued. Read on for more on their first day's performance.
02 July 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
Less than two months since Spinning off EPROB SS on March 23, 2020, Electrolux AB (ELUXB SS) is up +23% versus the OMX 30 index, up +8% during that time. With its 1QFY20 earnings largely in-line with expectations, its strong financial positioning versus peers, we continue to see near-term positives for the company ahead of a longer-term recovery and recommend holding ELUX.
15 May 2020
Bankinter SA (BKT SM), one of the major banks in Spain in operation since 1955, has announced the separation of its successful direct banking segment, Linea Directa Aseguradora. Originally founded as a joint venture with Direct Line Insurance Group Plc (DLG LN) in 1999, it was the first bank in Spain to offer online services and became a wholly-owned subsidiary of BKT in 2009. The business has demonstrated its viability in generating value, so now will become independent to further drive growth.
08 May 2020
Less than two months from its Spinoff on March 23, 2020, Electrolux Professional’s AB (EPROB SS) first earnings results beat expectations and shares jumped +29% on the day, touching our target price. While our long-term positive outlook is maintained, in the short-term EPRO could face some headwinds ahead in FY20, particularly because of the pandemic. As a result, we will continue to keep EPROB SS on our watchlist for re-entry opportunities in the future.
07 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
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