With the fear of a slowdown in the hotel space slowly starting to dissipate, Wyndham Hotels and Resorts, Inc. (WH) revealed more or less in-line 4QFY18 and FY18 earnings. While we have amended our target price, we believe WH’s repurchase program (purchased $119m of its $300m share repurchase program in 2018) will benefit investors in the short to mid-term period.
21 Feb 2019
After being fully Spun off from its former Parent BGC Partners, Inc. (BGCP) on November 30, 2018, Newmark Group, Inc. (NMRK) reported a small earnings beat for its first earnings as a fully listed entity. As the fifth largest real estate broker by volume in the US and trading at a deep discount to its peer group, we recommend doing further work in the name.
13 Feb 2019
Following the likes of Zoetis (ZTS) and Elanco Animal Health (ELAN) under animal healthcare separations, Henry Schein, Inc. (HSIC) recently completed the split from its animal healthcare business. Covetrus (CVET), merged with fast growing animal health tech platform company, Vets First Choice to become the first pure-play animal health distribution entity. Click for our First Day of Trading view.
12 Feb 2019
In what’s turning out to be a story-filled 2016 Spinoff, former Parent of Alcoa (AA), Arconic (ARNC), is on the verge of another break-up in order to reaffirm shareholder value creation after recently rejecting a $10bn bid for the whole company.
08 Feb 2019
Ecolab, Inc. (ECL), a specialty chemicals conglomerate serving the hygiene, food safety and industrial water markets, has announced the separation of its Upstream Energy segment by mid-2020 in a tax-free Spinoff (retaining the Downstream business, which serves refineries and petrochemical plants). Both companies will remain leaders in their respective spaces, while gaining the flexibility to focus on their separate (and increasingly diverging) operations.
07 Feb 2019
After a late start to its when-issued trading (initially scheduled for Jan 28, then Feb 4), Covetrus, Inc. (CVETV US – when-issued ticker) finally began trading yesterday (Feb 5) and opened at $38.00. With its first day of normal trading tomorrow (Feb 7) and the fact that it will be entering the MidCap 400 index, we decided to take a look at some of the more recent Spinoffs and how they reacted to being newly listed on the market.
06 Feb 2019