Inelegant Investor

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What’s Good For The Goose Is Good For The GAMCO- Gabelli’s Company Set To Spin Off Associated Capital

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Mario Gabelli has often made money off of spinoffs. Now he’s executing one. Gabelli, the CEO and controlling shareholder of GAMCO Investors(GBL), will be spinning off the company’s alternative investment management business and some assorted assets as Associated Capital Group.  At 11:59PM on November 19, GAMCO shareholders as of November 12 will receive one Associated Capital Group Class… Read More »

SunTrust’s Bob Peck- Yahoo’s Alibaba Spin Could Be Taxed As Much As 65%

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While Yahoo(YHOO) still persists in its hope that its spinoff of Aabaco Holdings and its Alibaba(BABA) stake will be tax free, one analyst believes that investors have not been properly evaluating the worst case.  Bob Peck of SunTrust Robinson Humphrey believes that taxes may be as high as 65% of the Alibaba stake’s value. Why does he believe that?… Read More »

Hewlett Packard Enterprise To Join S&P 500; Archrock To S&P SmallCap 600

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As is often the case, this week’s spinoffs have implications for market indexes.  First, Hewlett-Packard(HPQ) will be replaced by BlackRock(BLK) in the S&P 100. Hewlett-Packard will be changing its name to HP and spinning off Hewlett Packard Enterprise(HPE).  Hewlett Packard Enterprise joined its former parent in the S&P 500 after the close of trading on Friday, October 30.… Read More »

As Fiorina Runs For President On Her Record, A Broken HP Undoes Her Biggest Gambit

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It would be unfair and inaccurate to blame all of Hewlett Packard’s(HPQ) problems on Carly Fiorina. After all, her successor as chairwoman, Patty Dunn resigned after presiding over illegal spying on Board members and journalists.  Mark Hurd, CEO at that time, later resigned amidst allegations of improper payments to a contractor with whom he had a personal relationship.… Read More »

Icahn Urges AIG To Split In Three; Paulson Says Could Lead To 66% Stock Value Increase

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For most Americans months away from their 80th birthday, life has long since settled into a post-retirement routine. For Carl Icahn, who will turn 80 in February, he’s just getting started, going after larger targets than ever. Last week, Icahn announced he was forming a Super PAC with $150 million of his own money to promote legislation to… Read More »

Barron’s Thinks Barnes & Noble Education Could Almost Double

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Though its stock price is still languishing at $13.17, below its initial post-spinoff price, Barron’s thinks Barnes & Noble Education(BNED) could be worth $25. Barron’s notes that Alex Fuhrman of Craig-Hallum Capital Group feels similarly. “It’s an attractive business with high barriers to entry because of the physical presence on college campuses and an early movement into the… Read More »

Valeant Neuro Spin Now “On The Back Burner”

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What a difference a week makes. Last week we reported that Valeant(VRX) was considering spinning off its Neuro drugs. Now, in the face of mounting conerns about its relationship with specialty pharmacies including Philidor, the company assures us that everything is ok.  On a conference call this morning, CEO J. Michael Pearson told a questioner that the Neuro spin… Read More »

Is Recent Blackstone Spinoff PJT Partners A Bargain? WSJ Says Maybe

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We failed to note it at the time, but on October 1, Blackstone(BX) completed the spinoff of several advisory businesses which combined with PJT Capital to form PJT Partners(PJT).  Blackstone unit holders received one PJT share for every forty units of Blackstone held. The spinoff was structured to be tax free to unit holders. PJT Partners begins operations… Read More »

Yahoo’s Troubled Aabaco Holdings Spinoff Of Alibaba Stake May Face New Delay

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It’s been a rough road for Yahoo(YHOO)’s planned spinoff of its Alibaba(BABA) stake into Aabaco Holdings. After months of sniping with the IRS, culminating with the agency’s refusal to issue a private letter ruling, the company decided to move ahead anyway without the ruling and rely instead on the opinion of counsel.  The company backed a Q4 date… Read More »

Ferrari Bucks IPO Trend, Prices At Top Of Range, Begins Trading Today

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Amidst a brutal environment for IPOs, Fiat Chrysler’s(FCAU) IPO of 10% of Ferrari(RACE) seems to have bucked the trend. The IPO priced at $52, at the top of the $48 to $52 range, in the face of strong demand.  At this price, Ferrari will have a market capitalization of nearly $10 billion. With a small float of just… Read More »

Under Political Pressure, Valeant Changes Course, May Spin Off Neuro

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Bill Ackman loved its business model of purchasing companies with “mispriced” drugs and raising prices, but, under fire from regulators and legislators, Valeant(VRX) announced today that it will be completely changing its business model.  Recent outrage about huge price increases for acquired drugs including public statements by Democratic Presidential candidate Hillary Clinton have been a cause of the… Read More »

Fiat Chrysler Races Ahead With Ferrari IPO And Spinoff

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Posters featuring its iconic speedsters grace the walls of teenagers’ bedrooms around the world.  Now, fans will have a chance to own a piece of the company.  Management is busy on the road this week promoting an IPO of Ferrari. The company, 90% of which is owned by Fiat Chrysler(FCAU), will, naturally, trade under the ticker RACE.  The IPO… Read More »

CNBC ‘Knows’ Why Amazon Won’t Spin Off Web Services

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For years, a favorite speculation of the spinoff prognosticators has been that Amazon(AMZN) should spin off its fast growing Web Services business. These rumors have had little basis in reality. After all, Jeff Bezos does what he wants, and pays little heed to the whims of others. The buzz only intensified when Amazon recently began breaking out the… Read More »

Bob Evans Will Sell Real Estate, Not Spin It Off

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Now, let me tell you a little bit about Bob Evans(BOBE). This ain’t no Bob’s Broccoli Buffet, this here is a pile your plate high with sausage and go back fer more kind of place.  We reported in March that, despite pressure from Sandell Asset Management, the company would not be spinning off its packaged foods business, and… Read More »