Corporate trends, activist investor activity, new management teams, former spin-offs, and general investing commentary.
Describe the various types of spin-off transactions, key drivers, categories, and fundamental characteristics investors need to consider.
Explores all the important aspects of a stock spin-off, including outlining the transaction, rationale behind executing a spin-off, the timeline of events and key regulatory filings, and initial listing and trading terminology.
Have you ever wondered why some spin-offs do extraordinarily well and others do very poorly? This article investigates the key attributes of top performing spin-offs to help investors make better decisions.
Spin-offs have historically been a very attractive area of the market for active investors. This article investigates studies from the leading academic and financial firms to shows how investors can best use this information.
This article explores the top reasons why companies execute spin-offs and illustrates these reasons with examples from recent spin-offs.
Spin-offs are a great place for investors to look for potential opportunities. This article explores some of the key characteristics that could result in a spin-off being a compelling long-term investment.
Describes different types of special situation investment opportunities as well as the benefits and drawbacks of these investment situations.
Organizing spin-offs into different categories can help investors efficiently filter through opportunities to find ones that fit their investment philosophy and mandate.
This article investigates spin-off ETFs, Indices, and Mutual Funds to determine how they are structured and if they make sense for investors.
Spinning off a business usually goes against company executives’ rational self-interesting of running a larger company and getting paid more. This article explores the key spin-off drivers and major stakeholders who push for change.
In this article, we describe the three main types of spin-off transactions and how the ownership dynamics, timing, and capital raising implications could be different depending on how the transaction is structured.
Introduction: There are some industrial conglomerates that have enviable track records of creating per share value. They efficiently operate the business and shrewdly allocate capital, buying assets (including their own stock) at attractive prices and working to continually improve the overall quality [...]
Introduction Special situation opportunities are investments generally predicated on some type of event. The event could be a change in a company’s ownership profile, capital structure, or operations. In other words, a set of circumstances has disconnected the company’s valuation from [...]
Summary: The well-known activist investment firm, Elliott Management, sent a public letter to eBay’s Board of Directors articulating their rationale for investing in eBay and their plan for improvement. eBay appears to fit the activist investor playbook of underperforming operations, valuable assets [...]
While large industrial conglomerates have always been active in acquiring new companies and divesting legacy businesses, their tendency to focus on a select few or even just one key end market has increased in recent years. To find examples of this trend, investors [...]
Introduction It's no secret that Procter & Gamble has struggled over the last few years (notwithstanding the most recent quarter). Revenue growth has been stagnant and below inflation. Profits have not faired any better with earnings more or less flat. This is [...]
Introduction: On October 9th, Trian Partners filed an amended 13F which disclosed their newest investment, PPG Industries (PPG). Along with Sherwin-Williams (SHW) and AkzoNobel, PPG is one of the world’s largest coating companies. The shares have underperformed and traded [...]
Introduction: On October 1st the board of directors replaced John Flannery as Chairman and CEO with Larry Culp. Culp had a great 25-year career at Danaher from 1990 -2014, including ~15 years as President and CEO from 2000 – 2014. During his tenure [...]
Introduction: America’s industrial companies have been actively managing their portfolios over the last few years through spinning off business segments. For instance, the largest industrial conglomerates such as General Electric, Honeywell, DuPont, and Danaher have each executed spin-offs of varying sizes. But the [...]
Summary: PayPal is a dominant payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. The business has been growing rapidly due to their position in the secularly growing e-commerce market. Third Point, the well-respected activist investment firm, [...]
Summary: Howard Hughes is an overlooked company that doesn't fit cleanly into a category for investors. They own unique assets, execute a low-risk business strategy, have an aligned management team, and are not reliant on dilutive capital raises to grow the business. Key project [...]
Summary: Sadly, Ferrari's excellent CEO Sergio Marchionne has been replaced due to health issues. Despite Marchionne leaving, the company remains a case study in effective brand management with their low volume strategy while fostering a culture of enthusiasm, yet exclusiveness. If management can [...]
Summary: Allegion is a 2013 spin-off from Ingersoll-Rand that has benefited significantly from the separation. As a stand-alone company removed from their former conglomerate parent, the business has received much more attention, particularly in their international segments where margins have flipped from negative [...]