Author Archives: Inelegant Investor
The drama surrounding Yahoo(YHOO)’s proposed spinoff of its Alibaba(BABA) stake continues. Though the company has said it is pushing forward and is optimistic, Barron’s reports that Morgan Stanley feels a 0% probability of the deal is priced in at the current stock price. The sentiment on the stock is now as if they’ll never make the spin happen,… Read More »
With $6 billion in cash burning a hole in its wallet, PayPal(PYPL) will not slow its aggressive acquisition program after its purchase of Xoom(XOOM). Dan Schulman, who will be CEO of PayPal following its July 17 spinoff from Ebay(EBAY), told the Financial Times that acquisitions would be a priority, as PayPal uses the $6bn war chest that is… Read More »
Amidst this great Summer Of Spin, what are the best prospects? According to Forbes’ Antoine Gara, who has also noted the flurry of spinoffs: PayPal and Baxalta(BXLT). About PayPal: PayPal is a leader in online payments, with high margins and strong revenue growth. It could prove valuable to tech giants like Google, Apple, Microsoftand Facebook, who are all toying… Read More »
Baxalta(BXLT) completed its spinoff from Baxter International(BAX) yesterday. Or, as Baxalta would have it “Baxalta Launches as a Global Biopharmaceutical Leader Dedicated to Patients with Orphan Diseases and Underserved Conditions.” Baxalta is no slouch, what with “New products and indications planned to contribute $2.5 billion in sales by 2020, building on base of $6 billion in annual revenue.”… Read More »
Graham Holdings (GHC) announced this morning that it had completed the spinoff of Cable ONE(CABO). As we previously reported, Graham shareholders received one share of Cable ONE for each share of Graham Holdings held. Interestingly, Graham Holdings CEO Donald Graham, reported that his mother and predecessor(and Buffett confidante), Katherine Graham viewed Cable ONE as her ‘best acquisition ever’.… Read More »
The unprecedented number of spins this week has kept the folks at S&P working overtime making changes to their indexes. Last week, AOL(AOL), a spinoff of Time Warner(TWX) was acquired by Verizon(VZ), a conglomeration of several spinoffs of the original AT&T(T). As a result, Casey’s General Stores(CASY) will move from the S&P SmallCap 600 to take its spot in… Read More »
Energizer Holdings(ENR) will be completing its spinoff of Energizer Holdings tomorrow, July 1, 2015, and renaming itself Edgewell Personal Care(EPC). Shareholders as of June 12 will receive one share of New Energizer for each share held. An explanation for the Edgewell name and its power, strength and beauty can be found here. Though Edgewell management is bullish on… Read More »
The Summer Of Spinoffs continues on July 1 with NiSource’s(NI) spinoff of the Columbia Pipeline Group(CPGX). NiSource shareholders as of June 19 will receive one CPGX share on July 1 for every NiSource share held. Columbia’s new board has already approved ambitious expansion plans. The company plans to grow EBITDA by 20% annually and dividend by 15% annually… Read More »
Graham Holdings Company(GHC) was, not long ago, The Washington Post Company. But after the sale of The Washington Post to Jeff Bezos in 2013, the name needed to change. The Washington Post was neither the first nor the last asset bought or sold as Donald Graham radically transforms the company he inherited from his mother Katherine. Previously, Newsweek… Read More »
For the past month, Yahoo (YHOO) has been awash with uncertainty over saber rattling by the IRS that calls the tax-free nature of the spinoff of its Alibaba(BABA) stake into question. Last week, Marissa Mayer downplayed concerns. This week, Yahoo General Counsel Ron Bell tried to do the same. Yahoo! Inc. is working with tax officials to complete… Read More »
Paging Maverick and Iceman. Last June, Masco(MAS) CEO Keith Allman signaled that structural change was afoot. A year later, the company is poised to spinoff its Installation and Services business into TopBuild(BLD). Masco shareholders as of June 19, 2015 will, on June 30, 2015, receive one TopBuild share for every nine Masco shares held. Keith Allman, Masco’s President… Read More »
TriMas(TRS) has had a long and winding road as a company. It originally began life as Campbell Industries, headed up by former Masco(MAS) executive Brian Campbell. Masco backed Campbell and sold many of its smaller manufacturing businesses to Campbell, resulting in a name change to TriMas. TriMas, owned largely by Masco, continued to acquire manufacturing assets until its… Read More »
As previously discussed, Baxter International (BAX) will be spinning off Baxalta (BXLT) after the close of business on June 30. As is often the case with larger spinoffs this will result in some S&P index reshuffling. First, Baxter will no longer be large enough to remain a member of the S&P 100 and will be replaced by Priceline… Read More »
You may never heard of Baxter International(BAX), but the $37 Billion behemoth may have saved your life. Now, the company is slimming down, as the Board has approved the July 1 spinoff of Baxalta(BXLT). Shareholders of record as of June 17 will receive one share of Baxalta for each Baxter share owned. Baxter will retain 19.5% of Baxalta… Read More »
Though the majority of Johnson Controls(JCI) revenue derives from its automotive business, there has long been talk of spinning off the unit. Yesterday, the company announced that “it is exploring strategic options for the separation of its automotive business”. Of course, you know which strategic option we are rooting for. “Today’s announcement continues our strategy of proactive portfolio… Read More »