News & Press
The coronavirus pandemic is already being predicted to be responsible for 20 million US job losses and, with trillions wiped off global stocks resulting in more than 35 percent market declines, it is getting hard to stay positive. But remember: everything comes in cycles, and when things get tough and the beacons of hope seem few and far between, there are always a few great leaders out there we can trust, and they don’t get much better than Warren Buffett.
Mr. Buffett, who is 90 in August, has seen more than the majority of investors, and that’s why The Edge (who source under-performing companies for activist involvement, Special Situations and Spinoffs) believes investors should take a leaf out of Warren’s playbook: keep calm and find value from the wreckage.
The coronavirus outbreak has sadly led to the closure of many companies across the nation, leaving lots of small business owners fearing for their livelihood. This was the case for 40-year-old Neil Bharadwa, owner of the Cambridge Fruit Company.
Having opened in 2005, Neil has made a successful living supplying fresh fruit and vegetable boxes to offices across the city, but with many businesses asking their employees to work from home, Neil saw his business disappear, almost overnight. With the kindness of a New York businessman, and Neil’s determination to remodel his business, no one could have predicted the amazing generosity that has meant he is now busier than ever.
Jim Osman, the founder of The Edge, sees juicy opportunities arising from the coronavirus-induced market plunge. In an exclusive interview with Business Insider, Osman relayed three stock picks that have “at least 50% upside from where they are.” He says “any good investor won’t keep pushing the same old narrative.”
When we last left off with Jim back in January, he was sniffing around for stock-specific, catalyst-driven events that would push issues higher in what he saw as a fully-valued market. But that was before a global pandemic took hold.
Today, with the proliferation of the coronavirus, Osman’s pivoted his strategy to best take advantage of the fallout — and he’s seeing plenty of opportunities. For his 200-plus clients — each of whom pays a minimum of $1,000 a month for his research, and who have total assets managed of $400 billion — that’s good news.
Forget the Corona-crash – any activist who devours a large portion of America’s adored dining colossus The Cheesecake Factory (NASDAQ: CAKE) is in for a sweet potential payday. The Cheesecake Factory was incorporated in 1992 and went public in September 1993, with a listing of $3. Now trading at $30 (even after the damage to the industry wrought by Covid-19), it’s not done too badly.
However, with a monster menu of 21 pages and over 250 dishes made from scratch every day (including 34 varieties of cheesecake and other baked desserts), The Cheesecake Factory is in dire need of restraint. Any seasoned activist should be able to go in and wow 73-year-old creative genius Chairman, President, and CEO David Overton with bright forward-thinking ideas for his 38,00-strong and supported workforce.
Jim Osman, the founder of The Edge Group, thinks about investing differently than most. He’s a pure-blooded contrarian.
“If people are all going right down the line, I might hang a left,” he said in an exclusive interview with Business Insider. “I just don’t go with the crowd on stuff. More often, I’ve found that pays off.”
Osman, who is set to publish a book detailing his strategy this spring, made a name for himself sniffing out opportunities that have mostly gone overlooked. He’s what you would call a “special-situations” investor. Circumstances like corporate restructurings, insider buying, recapitalization, managerial incentives, and spin-offs top his list of attractive opportunities.
The Edge CEO Jim Osman was recently interviewed by ValueWalk’s Raul Panganiban on his outlook on Special Situations Investing. In addition to his views on the markets and how special situations are value creators, Jim also provides excerpts from his forthcoming book on investing in the space. Take a listen on the link below to hear how investors can benefit from looking for ideas in the space.
Value investing is dead and The Edge Group is predicting the Catalyst Space as the new trend for 2020. The Edge Group LLC, the global leader in Catalyst, Special Situations and Spinoff research, has acquired substantially all of the assets of WhiteSand Research LLC, offering money managers even greater access to unique market intelligence in the niche Catalyst, Special Situations and Spinoff space.
Amazon is in a prime position to make a bid for eBay in 2020 (and can afford to do so in cash) after a decade which saw the departure of two CEO’s forced out by activist giants. According to analysis of potential synergies from The Edge, eBay has had more than its fair share of outsider intervention since it bought PayPal in August 2002 for $1.5 billion.
This may be the best opportunity Amazon has to takeover its longstanding online competitor.
There’s a potential stock crisis brewing that could offer up a nightmare before Christmas, despite historic US spending records on Black Friday and Cyber Monday. That’s according to The Edge after their analysis of retail sales over Black Friday and Cyber Monday confirmed the polarization of high-end and low-end retailers. All eyes will be on the major retail stocks as investors tentatively creep toward Christmas Eve trading following last year’s crash.
The poor performance of recent spinoffs is creating an overly negative sentiment around any such deals, fund managers say.
Spinoffs have missed out on the broader market rally during the second half of 2019. But The Edge Consulting Group, a research firm that specializes in spinoffs, said there are still opportunities to go long. On Thursday, investors were pitched situations ranging from U.S. retail to European media stocks at an event hosted by the research firm as a benefit for The Alzheimer’s Association.