The Spinoff Report » Research

TSR Model Portfolio Performance Update – July 30, 2010

ryanmendy — Fri, 30 Jul 2010 13:14:54 +0000

Backed by timely calls, our TSR Model Portfolio continues to outperform every major world index.

Click here to see: TSR Performance Chart – July 2010

Smart Titles and CoreLogic: Twin Paths to Value Creation

jimmyosman — Tue, 01 Jun 2010 14:44:32 +0000

Now two and half years in the making, in our fully researched view, First American Corp. splitting to create two independent, focused companies for financial services and information solutions is the most effective way to focus and grow these leading businesses. CoreLogic (CLGX-WI), freed from the fluctuations of the insurance business, can expand its offerings through organic and inorganic routes. First American Financial (keeping the parent’s ticker FAF) will focus on streamlining the insurance business and grow primarily through inorganic means. As both companies will be a part of the same S&P MidCap 400 Index, as the parent was, we do not expect sizeable index selling.

Click here to view page 1 of the (40) page research note

TSR Newsletter/ 1Q2010 /Quarterly Review

jimmyosman — Wed, 14 Apr 2010 12:57:49 +0000

The TSR model portfolio fund is a paper portfolio that is technically constructed to mirror a ‘real and live’ portfolio with investor funds. The Fund’s holdings are weighted and contain the corresponding amounts of shares.

TSR Portfolio – 1Q2010 with Commentary

Cablevision / MSG – Spinoff addresses Cash Flow Concerns for CVC, but MSG’s Lackluster Opening Ignores Key Trophy Assets

jimmyosman — Mon, 01 Feb 2010 13:24:56 +0000

Cablevision Systems’ board of directors set Feb 9, as the date for the planned spinoff of its Madison Square Garden assets.CVC first announced its plan to spinoff the unit in July 09, including its Madison Square Garden arena, its professional sports teams (e.g. NY Knicks & NY Rangers), its Theaters (e.g. Radio City Music Hall and the Chicago Theater), its MSG regional sports networks and cable music channel Fuse. Shareholders will receive 1 share of MSG Class-A common stock for every 4 shares of CVC Class-A common stock they hold. The Spinoff entity will begin trading regularly on Feb 10, under the symbol “MSG.

Click here to view page 1 of the (51) page research note

EnCana / Cenovus – Pure Play Natural Gas Strategy to Pay Off Well

admin — Tue, 01 Dec 2009 00:37:04 +0000

Since its formation in 2002, EnCana has struggled to differentiate its two core assets. That struggle has especially hurt its oilsands interests, and has resulted in a share price that underperformed rivals. We believe the spinoff event will act as a positive catalyst enhancing shareholders value. We have an Absolute Buy rating on the parent (EnCana) and Buy rating on the Spinoff entity (Cenovus). Also an earlier Spinoff transaction of a Canadian company “Bankers Petroleum” operating in Oil & Gas sector which was done with a similar Spinoff rationale has performed exceedingly well. The Bankers Petroleum stock on which we had an Absolute Buy rating has generated 507% return since YTD. When we draw a parallel between the two spinoff stories, we are confident that this spinoff will also add value to shareholders.

Click here to view page 1 of the (58) page research note

LMC (Entertainment) Split-Off: Games People Play

admin — Thu, 19 Nov 2009 16:40:24 +0000

Value discovery is a favorite play of management and this Split-Off primarily allows the market to value the entertainment assets more fairly. But the real benefit of the transaction would accrue to Mr. Malone, who will enjoy more voting power over DIRECTV, once the merger goes through. The transaction benefits him in two ways: More voting rights in DTV and value enhancement of his stake. Still, the transaction is beneficial to all stakeholders and we recommend a BUY.

Click here to view page 1 of the (44) page research note

Julius Baer/GAM – Pure Private Banking a Compelling Story While GAM to be a Turnaround Story

admin — Wed, 30 Sep 2009 16:42:41 +0000

The Julius Baer Holding split (on September 30th 2009) will result in two independently listed companies, with Julius Baer Group solely concentrating on providing high-quality services to private banking clients and GAM Holding focusing on active asset management. The extraordinary general meeting held on June 30th 2009, approved Julius Baer Holding to be renamed GAM Holding, with current shareholders of Julius Baer Holding to own two shares: GAM Holding (the current share) and Julius Baer Group (the newly listed company), which will be paid in the form of a dividend in kind (one for one).

Click here to view page 1 of the (39) page research note

OIL India Privatization – ‘Subscribe’ – Second largest E&P Company in India

admin — Wed, 02 Sep 2009 16:43:15 +0000

Oil India Ltd is soon to be privatized with an IPO through a 100% book building process with a price band of INR 950-1,050 per share and expects to raise funds in the range of INR 25.1bn- INR 27.8bn, through the fresh issue of shares. The IPO is valued at a FY10E P/B of 2.0x-2.2x. We believe this is reasonably priced as compared to its Peer average FY10E P/B of 3.1x

Click here to read page 1 of the (21) page research note.

PDE – Drilling Deep to Find Value

admin — Mon, 24 Aug 2009 17:25:31 +0000

On Aug 4, 2009, the board of directors of Pride International (PDE) made a strategic decision to focus on Deepwater and decided to Spinoff its Mat Jack-up rig, which caters to shallow water drilling. The Mat Jack-up rig revenues in the Gulf of Mexico (GoM) has been declining over the last few quarters with a sharp fall in utilization and day rates. Pride management is justified in dumping this low growth business to focus on the high growth Deepwater drilling business, which has high utilization and day rates.
All the steps preceding the Spinoff are complete. For each share of PDE that a shareholder owned at the close of business on Aug 14, 2009, the record date, they will receive 1/15 of a share of Seahawk (HAWK) stock on the Spinoff date.

Click here to read page 1 of the (43) page research note.

CareFusion Spinoff to unlock value for distribution giant

admin — Fri, 21 Aug 2009 17:26:05 +0000

Trotting along the paths of similar MedTech companies, CareFusion prepares to extricate itself from the shadows of its big brother (Cardinal Health) later this month. The Spinoff of CareFusion comes at a time of heightened activity of reforms in the Healthcare industry. We believe that this will be an appropriate time for the Spinoff to happen as it will earn time for both the companies to focus and leverage on their core strengths and prepare for post reforms era. Cardinal’s Board approved the Spinoff on July 10, 2009. Accordingly, CareFusion will distribute 80.1% of its common stock to Cardinal Health shareholders in the ratio of 0.5:1 while 19.9% stake will be retained by Cardinal Health (with a commitment to dispose this stake in less than 5 years).

Click here to read page 1 of the (50) page research note.