Since its November 19, 2018 announcement, the stock price of Nuance Communications, Inc. (NUAN) has remained at the same $16 level. However, NUAN (the leader in conversational AI innovations) has been pushing forward with selling its non-core assets (like its Imaging business and its Subscription Revenue Services business) in order to help reduce its debt. Ahead of releasing its prospectus, small-cap investors should start evaluating this opportunity.
08 Jul 2019
Delayed from its Q1 2019 targeted Spinoff timing by the US government shutdown, KAR Auction Services, Inc. (KAR) is set to separate Insurance Auto Auctions, Inc. (IAA) on June 28, 2019. This is the first ever Spinoff in the field of salvaged auto auctions, and will create a pure-play insurance auction company with superior EBITDA margins compared to KAR's ADESA segment. The Spin looks fairly valued in when-issued trading, but there is significant upside in the Parent ex-Spin.
19 Jun 2019
With the NBA basketball finals coming to an end last night (congrats to the Toronto Raptors), the sporting world turns their attention to what’s happening in NYC at Madison Square Garden (MSG). While fans look to see if James Dolan will fail (again) to bring a marquee player to the Knicks this summer, we’ve analyzed MSG and its upcoming Spinoff of its trophy sporting assets. Don’t wait for the first Form-10, it’s time to get in now pre-Spin as the Spinoff is not the only option being explored.
14 Jun 2019
The historical merger of Dow and DuPont in August 2017 to form the mega-industrial conglomerate DowDuPont, Inc. (DWDP) will now come to its final stage with the separation of Corteva, Inc. (CTVA). Shareholders who participated through this process now hold three powerful Large-Cap companies positioned to dominate the Material Science, Agriculture and Specialty Chemical spaces. We've updated our estimates and recommendations going into the split.
29 May 2019
As the jeans space heats up with companies rushing to the market like Levi Strauss & Co. (LEVI), Kontoor Brands, Inc. (KTB) and The Gap, Inc. (GPS), we believe longer-term, both VF Corp. (VFC) ex-Spin and KTB look interesting as an investment. As we have seen time and again with some recent Spinoffs (particularly in the US), listing a company with debt with a short-term index play due to the Spinoff’s size is a recipe for a sell-off from its first few days of normal trading.
16 May 2019
Brunswick Corp.'s (BC) upcoming split with its Life Fitness and legacy billiards businesses, originally planned as a Spinoff, is now looking more likely to be sold instead, given current market conditions and potential value creation opportunities available to the 173-year-old boatmaker. In this analysis, we take a look at the likely valuations involved in either scenario (Spin or sale), and examine exactly what brought the company to this decision.
01 May 2019