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 Jun 2020
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 Jun 2020
It’s been over 6 years since Finnish investors have witnessed a corporate break-up and next week, Metso Corp. (MEO1V FH) will be back once more to split again. After a successful Spinoff of Valmet Corp. (VALMT FH) in 2014, which jumped +45% in its first year, Metso will be Spinning off its Minerals business to merge with another industrial player, Outotec Corp. (OTE1V FH) while the RemainCo (to be renamed Neles Corp) will be a pure-play Flow Control Business.
23 Jun 2020
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 Jun 2020
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
Following a complete company takeover offer and a suggestion from a "friendly activist" to break-up the Grains and Malts businesses, Graincorp Ltd's (GNC AU) strategic review concluded with the Spinoff of its malts business into United Malt Group Ltd (UMG AU), to separate next week (April 2, 2020). We believe this Spinoff simplifies any attempt to have the independent entities acquired by larger players in their space and provides the management control over the value in that potential takeover.
26 Mar 2020