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Alerts
We see strong upside in satellite internet provider EchoStar Corp. (SATS) as the company sees its network demand increased in this challenging time. As more people are staying home due to either lockdown or working from home as a health precaution, the need for reliable data connection is made apparent and SATS' services are seen as critical to sustain the current working environment.
15 May 2020
Alerts
In its first earnings since the merger between United Technologies Corp. (UTX) and Raytheon Co. (RTN) and the dual Spinoff of Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS) in April 2020, new Parent Raytheon Technologies Corp. (RTX) proves its defense operations maintain their resilience in the ongoing pandemic environment. The recovery in the commercial aviation market will take a couple years to occur, but current levels provide an entry opportunity in RTX.
15 May 2020
Alerts
With the suspension of all sporting events and shows, this had an obvious effect on the revenue stream for both MSG Sports Corp. (MSGS) and MSG Entertainment Corp (MSGE). However, with esports the next leg of growth for MSGS and MSGE building the futuristic venue in Las Vegas, The Sphere, we see the current discount to their asset based valuation (MSGS - highly-valued NY Knicks and Rangers and MSGE’s legendary venues) an opportunity for investors to enter.
14 May 2020
Alerts
Both Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS), the new Spinoff companies from Raytheon Technologies Corp. (RTX), beat expectations in their first earnings post-Spin (April 3, 2020) and saw stock price jumps on the days of their releases. CARR and OTIS are resilient in the face of the ongoing pandemic, with sales back to pre-pandemic levels for the former and the latter seeing increased domestic sales. Continue to hold for long-term value creation from these industry leaders.
13 May 2020
Alerts
We are increasing our Spinoff Model Portfolio holding on Synnex Corp. (SNX), given the value creation opportunities presented by the upcoming Spinoff of the Concentrix segment, as well as the strong returns made by the last time Chairman Matthew Miau bought shares on the open market (2018). His buying then yielded a +85% return, and his more recent purchases flagged our attention and entry into the MP on May 1. The below reiterates our main points on this high conviction name.
11 May 2020
Alerts
Resilient financials and liquidity as well as sustained bookings in the Americas highlighted the positives of Trane Technologies Plc's (TT) earnings that also saw the suspension of guidance and impacted operations due to the Coronavirus pandemic. Bookings were primarily hit in the EMEA and Asia Pacific regions, and the management has opted to not pursue share repurchases in order to conserve its liquidity going forward. We believe TT will see increased traction once the global lockdown eases.
07 May 2020
Alerts
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
Alerts
Back in 2018, Synnex Corp. (SNX) Chairman Matthew Miau bought $39m worth of shares on the open market, and made +85% returns. The Coronavirus market effect brought the share price back down near his entry levels, and he has now bought another $9m in shares - demonstrating his conviction in the company's performance even as it has delayed its planned Spinoff to the end of 2020. This positive insider buying trend has prompted us to take a pre-Spin entry in the Model Portfolio.
01 May 2020
Alerts
Madison Square Garden Sports Corp. (MSGS, Parent) and Madison Square Garden Entertainment Corp. (MSGE, Spinoff) completed their first day of separated trading yesterday (April 20, 2020), with shareholders of the combined entity seeing a one-day return of +4.4% compared to the S&P 500 Index return of -1.8%. Both companies are trading at discounts to their asset valuations, providing attractive entry levels for investors not yet involved.
21 April 2020
Alerts
Leading into this week's split between Madison Square Garden Sports Corp. (MSGS) and Madison Square Garden Entertainment Corp. (MSGE), which will trade independently post-Spin on Monday, April 20, we see significant upside in the current when-issued trading levels, and recommend investors to take advantage of this opportunity to own two strong brands: the highly-valued Knicks and Rangers sports teams and the legendary MSG venues business. Read on for our updated valuations.
14 April 2020