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
The ongoing situation with COVID-19 (coronavirus) has impacted the markets and caused a broad sell-off, including on many of our Model Portfolio names. We have reevaluated each stock in the MP with regard to how the outbreak impacts our expectations and target prices, and provide those updates inside.
16 March 2020
With the upcoming names on the calendar, the volatility in the market is presenting interesting opportunities to enter companies ahead of the catalyst where their fundamentals remain intact. This week, we’re highlighting Madison Square Garden (MSG) in which the sports franchise valuations alone are greater than MSG’s combined market cap and IAC looks oversold ahead of its upcoming Spinoff. For more on what’s coming up, click inside.
09 March 2020
Both Trane Technologies Plc (TT) and Ingersoll-Rand (IR) have begun their first day of trading today post its Reverse Morris Trust. With the new IR up +4% and entering the S&P 500 tomorrow leading to index buying from focused funds, we continue to see upside at current levels. For more on this break-up and an upcoming asset management Spinoff, please click here.
02 March 2020
The first break-up out of 38 Spins on the global calendar for 2020 will be taking place this week. Having created a successful Spinoff back in Dec 2013 as well as the potential inclusion of the SpinCo into the S&P 500 to create index buying, we’ll be monitoring the RMT of Ingersoll-Rand (IR) and Gardner Denver (GDI) as it trades in the when-issued market for any opportunities. For more on IAC, UTX and WOW, click here.
24 February 2020
Back on our radar, the smart insider at ConAgra (CAG - who has a track record of buying at the right time) bought more shares from his initial purchase in July 2019, yielding a +28% return for himself and our clients who followed him. As we wait for further clarity on the outcome of the strategic alternatives review at Canadian Solar (CSIQ), we believe a Spinoff could be coming. For more on the upcoming Spins (IAC and WOW), click inside.
27 January 2020
Textron's (TXT) upcoming earnings results on January 29 may see a break-up announcement (similar to our calls on Marathon Petroleum (MPC) and Nielsen Holdings (NLSN) resulting in their Spinoff announcements), and three major defense stocks we highlighted in October saw stock prices pop on the news of the drone strike on Iranian General Soleimani and the increased tensions between the United States and Iran. Read on for more on these names and the analysis coming up.
07 January 2020
As mentioned last week, both EchoStar Corp (SATS) and $100bn giant Naspers Ltd. (NPN SJ) will be breaking up this week starting from tomorrow (Sep 10) in order to create value for shareholders. With a significant discount in the when-issued trading for SATS and NPN creating the largest EU listed consumer internet company on the Euronext Amsterdam (primary listing), we encourage our client partners to send any questions over ahead of the split. Click here for more.
09 September 2019
Next week, global satellite provider EchoStar Corp (SATS) and $100bn giant Naspers Ltd. (NPN SJ) will both be breaking up in order to create value for shareholders. SATS will be removing its performance hampering segment while NPN will be creating the largest EU listed consumer internet company and its second Spinoff for 2019. For analysis and more on these situations, click here.
03 September 2019
For those who missed the recent release of the Idea Generator, please see the attached PDF. Two new ideas will be released this week ahead of Labor Day weekend, one on global satellite provider EchoStar Corp (SATS) as well as our view on home healthcare business, The Ensign Group, Inc. (ENSG). Both these names will be broken-up within the next two months, along with Naspers (NPN SJ) and Nuance Communications (NUAN).
27 August 2019