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
This week, we revisit the recent releases of our “Pick of the Fallen Spinoffs”, which yielded KAR via our screening process as we believe there are several catalysts for growth and value creation post-pandemic and our selection of three short ideas (ARWR, CDK and CPSI) primarily driven by the latest selling patterns from insiders within each company. For more, click here.
01 June 2020
Our client partners have made +25% return since our recommendation to enter SNX on May 1, 2020. Following the smart insider (who only bought for the 2nd time in 20 years), SNX has more upside to go ahead of its Spinoff. Another name in our portfolio we continue to promote that has not moved up as quickly as SNX is BG, with its 14 insider cluster buys and what this could mean going forward. Click here for these names and more.
26 May 2020
As the earnings season comes to an end for most, we have updated our valuations of the stock in our Model Portfolio, with a few more left to go. We continue to maintain our conviction call on MSGS and its current discount, along with PRSP and its upcoming earnings this week. PRSP has already given +18% return in less than a month, with more room to go. For a complete look at the earnings releases and our upcoming Special Sits reports, click here.
18 May 2020
This week, we continue to highlight the most attractive insider purchases with a potential catalyst. Synnex Corp. (SNX), which will Spinoff its top two global customer experience solutions business by Q4 2020 witnessed a key insider buying for only the second time in 20 years. Likewise, Perspecta (PRSP), as it nears its 2-year tax-free mark after earnings, saw an insider who has been proven right in the past buy as well. For more and all the earnings releases, click here.
11 May 2020
This week, we review the most attractive insider purchases on the market, which have an upcoming catalyst (SNX and PRSP) as well as highlight forgotten IPO-Spinoff, BellRing Brands (BRBR), ahead of our impending analysis and its upcoming distribution. Not only that, click inside for our ‘King of the Activists’ Study, with the aim to pair the insights from the study to find value creation opportunities.
04 May 2020