Following the completion of its simultaneous three-way Spinoff of Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS) and the merger with Raytheon Co. (RTN) to create Raytheon Technologies Corp. (RTX, Parent ex-Spins), the three newly separated companies provided strong returns on a down market day last Friday (April 3). All three entities have long-term value creation opportunities ahead, given their market-leading positions, higher margins and further potential upsides.
06 Apr 2020
Today marked the first day of regular trading for Graincorp Ltd (GNC AU) and its Spinoff United Malt Group Ltd (UMG AU) after trading on a when-issued basis since March 26. We believe this separation paves the way to higher valuations for either company as they seek being taken over by larger players, though until that comes through they will continue to operate as leaders in their respective industries. Read on for more details on the value created on their first regular day of trading.
02 Apr 2020
Yesterday (April 1, 2020) marked the first day of regular trading for the newly-separated Howmet Aerospace, Inc. (HWM, formerly Arconic, Inc. - ARNC) and Arconic Corp. (ARNC, Spinoff). The Parent previously made the same move to give its 2016 Spinoff its name and ticker (Alcoa Corp. - AA), resulting in significant market confusion, now being replicated with this new split. We are positive on HWM post-Spin's potential, and recommend looking for lower levels for entry into either entity.
02 Apr 2020
To take advantage of the market's recent movements, we're adding to our position in Trane Technologies Plc (TT). Our fundamentals remain intact for this company, and the market conditions allow for a lower increase level.
24 Mar 2020
Despite the ongoing selloff in the global markets, Electrolux AB (ELUXB SS) completed the Spinoff of its professional products business Electrolux Professional AB (EPROB SS) yesterday (March 23, 2020). We are positive on the forward outlooks in the mid- to long-term for both of these companies, considering the discounts they trade at relative to their peers and how negatives seem priced-in at current levels. Read on for more.
24 Mar 2020
With the upcoming three-way Large Cap Spinoffs at United Technologies Corp. (UTX) on April 3, the new companies Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS) have now listed in the when-issued market and are worth watching at current levels. We've adjusted our post-Spin target prices accordingly given their lower listing prices.
20 Mar 2020