Alerts
Spinoff Report
HWM & ARNC: Market Confusion Surrounds Newly Separated Industrials
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.

  • The Edge Recommends Investors Hold HWM (Ex-Spin) / Shorter-Term Investors Recommended Exit ARNC (Spin) at Current Levels
  • HWM: Superior EBITDA Margins Compared to Peers / Accumulate at Lower Levels
  • ARNC: Pension & Grenfell Liability Transfer Remains a Concern / Index Selling as ARNC Enters the SmallCap 600
  • Activist Firm Elliott Management Remains Invested Into Separation / First Day of Regular Trading April 1, 2020
  • HWM is a Current Spinoff Model Portfolio Holding / ARNC Exits the MP at the End of Today's (April 2) VWAP
To continue reading this article and to gain access to other
proprietary research please subscribe to :
Spinoff Report
Institutional Investors:
To subscribe please call us:    USA: +1 (973) 867 7760    UK: +44 (0) 845 459 7103
or click to subscribe to Edge research
Individual Investors:
Click to subscribe to Spinoff Report Lite
Need
Help?
To discuss any upcoming notes or for any urgent
assistance, please contact Jonathan Morgan
+44 (0) 845 459 7103 jm@edgecgroup.com