Our recently released analysis on Covetrus, Inc. (CVET) was based on the company's fundamentals still being intact despite its fall from original listing levels when it was Spun off from Henry Schein, Inc. (HSIC) in February 2019. However, the most recent earnings demonstrated that the company's short-term issues are persistent, and it won't be until the longer-term that the management sees improvement.
15 Aug 2019
Though we originally entered Autogrill SpA (AGL IM) into the Model Portfolio on a series of potential scenarios (Italian/European business Spinoff, stake sale and M&A), the company is instead demonstrating the benefits of the ongoing internal reorganization in terms of its plans for growth. AGL missed slightly on its most recent earnings release, but the management's focus is firmly set on continuing to deliver results in strategic partnerships, acquisitions, and market area dominance.
14 Aug 2019
Now that the Entertainment assets have been offloaded to The Walt Disney Co. (DIS), Fox Corp. (FOXA) has trimmed itself down to a sports- and news-focused business, and that narrowed operation is a key factor in comparing it to its more conglomerate peers like Comcast and CBS. However, the company has begun dipping its toes back into diversification with new acquisitions that hint to its future strategic plans, and multiple catalysts are expected to drive growth in the near-term.
08 Aug 2019
Last week, we released our research exploring further into the entire stake sale by the Chief Accounting Officer of Varex Imaging Corp. (VREX – a previous Spinoff from VAR) as this didn’t give the impression that positive news was on its way. Sure enough, pressure from various negative factors (detailed in our overview) from its earnings release after-market yesterday (Aug 6) has pushed the stock down -20% today. Read on for more details on this insider situation.
07 Aug 2019
Legacy Parent DuPont de Nemours, Inc. (DD) completed the two Spinoffs of Dow, Inc. (DOW) in April 2019 and Corteva, Inc. (CTVA) in June in 2019, and offers further upside as it continues to improve its growth opportunities and divesting of non-core businesses. Additionally, we are positive on the company's higher margin profile and reduced exposure to raw material cost volatility, as well as the ongoing share repurchases, new dividend policy, and the recent reverse stock split.
06 Aug 2019
Cars.com, Inc. (CARS) entered the Special Situations Model Portfolio on the back of our examination into the company as a potential takeover target with a turnaround at play, and our convictions were boosted by the ongoing strategic review initiated by the management. Unfortunately, during this most recent earnings call, three disappointing factors emerged: misses on all metrics, a management guidance drop, and the conclusion of the strategic review to remain an independent company.
06 Aug 2019