Sort by:
Full Analysis
We recommend new investors to buy (and current investors to hold) IAC/InterActiveCorp (IAC) heading into its stake distribution in Match Group, Inc. (MTCH), which is expected to be completed next week on June 30, 2020. Since our pre-Spin entry in the Model Portfolio (Feb 18, 2020), IAC has provided a +27% return with more to come for both IAC and MTCH post-Spin. See the updated analysis for our key details and valuations.
24 June 2020
Full Analysis
Solar panel manufacturer and distributor SunPower Corp. (SPWR) is following through on its 2019-22 business restructuring in this Q3 2020 Spinoff of its manufacturing business, Maxeon Solar Technologies, which will result in the removal of potential continued exposure to domestic tariffs. Additionally, SPWR will continue to focus on its solar panel deployment and distribution of renewable energy, simplifying its overall investment thesis. Read on for more details on this upcoming break-up.
23 June 2020
Full Analysis
HD Supply Holdings, Inc. (HDS) has a history of value creation through divesting non-core assets since its IPO in 2013, coming to its most recent move: the planned Spinoff of its Construction & Industrials distribution business. We believe the Parent will benefit from this transaction, and additional catalysts are present with the involvement of two activist investors, a director purchasing stock on the open market, and a flexible balance sheet allowing for a higher multiple. Read on for more.
05 June 2020
Full Analysis
We expect Post Holdings, Inc. (POST) to announce the distribution of its remaining stake in BellRing Brands, Inc. (BRBR) on its earnings call on Friday, May 8, 2020. Once distributed, BRBR will have a full free float and may have an index play depending on the stock price, so we've examined how other IPO-Spins have performed in the six months post-Spin. Our findings are included in the analysis, and our recommendation based on those findings is to keep POST and BRBR on a watchlist for now.
05 May 2020
Full Analysis
The ongoing Coronavirus outbreak has led to the suspension of the current NBA season and the broad implementation of curfews around the country on non-essential travel, resulting in the selloff in the major indices. The Madison Square Garden Co. (MSG) has decreased by -34.3% YTD compared to the S&P Total Market Cap Index return of -27.6% to date, making the upcoming Spinoff of the Entertainment business even more attractive at these lower levels.
17 March 2020
Full Analysis
We entered Arconic, Inc. (ARNC) in May 2019 on the back of major insider buying patterns (we booked partial profit of +18% within three months), and now the long-awaited Spinoff of Arconic Corp. (ARNC, Spin) is upon us, scheduled for April 3, 2020. ARNC (Parent) is renaming to Howmet Aerospace, Inc. (HWM), and with many different elements involved, our analysis lays out how best to play this aerospace/aluminum split.
17 March 2020
Full Analysis
In-line with the previous successful Spinoff of its commercial and residential security business Allegion Plc (ALLE, which has more than doubled its share price since listing), Ingersoll-Rand Plc (IR) is prepared for its Reverse Morris Trust (RMT) transaction of its Industrials business to be merged with listed Gardner Denver Holdings, Inc. (GDI), which will become a global leader in mission-critical flow creation and industrial technologies. Click in for more on this upcoming RMT.
20 February 2020
Full Analysis
As the entire market awaits this upcoming April 2020 3-way break-up of Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS), the Spins may see short-term pressure due to the negative sentiment surrounding the amount of debt received. However, with the potential for mispricing in the when-issued market, we’re taking a small stake in United Technologies Corp. (UTX) to receive all three new companies in order to play this iconic split. Click here for the full analysis.
19 February 2020
Full Analysis
After a series of successful separations which have maximized value (at a CAGR of 17% compared to the S&P 500’s +10% to date), media and internet holding company IAC/InterActiveCorp (IAC) is back again with another Spinoff of its most valuable asset, Match Group, Inc. (MTCH). The distribution will help reduce IAC's conglomerate discount and clean its balance sheet, while MTCH will benefit from an increased free float, the elimination of its dual-class structure, and potential index inclusion.
18 February 2020
Full Analysis
With Danaher Corp. (DHR) looking to entice shareholders to exchange all or some of their common stock in DHR for shares in Envista Holdings (NVST) at a potential 7% discount to NVST’s share price as the company removes its 80.6% stake, these type of IPO-Exchange Offer transactions are infrequent (recently ZTS and ELAN). Click here for our full analysis as we look further into the performance of these type of deals and the potential opportunity ahead.
10 December 2019