Author Archives: Inelegant Investor
Earlier this week, Demand Media(DMD) announced plans to split into a domain registration business and a content business. Though the opportunity seems promising, it was difficult to evaluate without the numbers for the business broken out, which, to our knowledge, the company had not done publicly. We were pleased, then, to read the transcript of the conference call… Read More »
When United Online (UNTD) first announced plans to spin off its FTD floral business last summer, the company anticipated it would be completed this quarter. In November, the company hoped to complete the transaction by August. Yesterday, the company released its fourth quarter earnings, and now hopes to complete the transaction by the end of the third quarter.… Read More »
Ever since its IPO, we have thought Demand Media(DMD) to be a strange beast- a content farm with a domain registration business bolted on. Well, the company announced today that it will be loosening those bolts and spinning off the domain registration business to shareholders. The company hopes to complete the spin in the next nine to twelve… Read More »
Time Warner(TWX) is no stranger to spinoffs. The company once known as AOL Time Warner lost the AOL(AOL) in what has proven to be a successful spin- much more successful, certainly, than the disastrous merger, perhaps the worst in American history, which brought the two firms together. Earlier in 2009, the company spun off Time Warner Cable(TWC). And… Read More »
Genie Energy(GNE) is a company that we have followed from the announcement of its spinoff from IDT(IDT). Last year, the company promoted an interesting exchange offer to allow holders to elect to trade their equity for high-coupon preferred stock with less upside from business performance. The offer was met with little interest. Undeterred, the company relaunched the exchange… Read More »
We try to cover every spinoff, but sometimes we just don’t get to them or they fall through the cracks. In the case of SEACOR Holdings'(CKH) upcoming spinoff of Era Group(ERA), we missed it until recently, but caught it prior to its upcoming ex dividend and distribution dates. Era Group crept up on us because it was originally… Read More »
Set a million monkeys loose with Yahoo Finance and a word processor, and what do you get? The answer, it would appear, is Seeking Alpha, a content farm with no particular editorial standards. We wrote last week about blatant, significant errors being covered up without acknowledgement. This morning, we encountered another wastebasket-worthy piece on AbbVie(ABBV). Imagine writing about… Read More »
John Malone does it again. In the first day of trading after its spinoff of Liberty Media(LMCA,LMCB,LMCAD,LMCBD), Starz(STRZA,STRZB) jumped 9.79% to close at $15.59. Despite a $1.1 billion debt burden, the Starz and Encore premium movie channels are thought to be a coveted prize for a larger media company. Starz is also investing heavily in original content such… Read More »
Friday, after the market closed, Liberty Media Corporation(LMCAD,LMCBD,LMCAV,LMCBV,LMCA,LMCB) announced that it had completed its spinoff from Starz(STRZA, STRZB), formerly the Liberty Media Corporation. For a cogent explanation of the alphabet soup, see our article from last week. As part of the transaction, Starz drew down its credit line and distributed $1.8 billion in cash to Liberty Prior to… Read More »
AbbVie(ABBV) is a behemoth of a company following its spinoff from Abbott Laboratories(ABT), but it is a one-legged giant. The chorus of concern around the companies prospects has centered on its extreme dependence on a single drug, Humira, which accounts for 50% of revenues and 70% of profits. There has been speculation that the firm would use its… Read More »
Whenever a corporate executive has to publicly state that they will not be spinning something off, it’s generally only a matter of time. This is likely the case with GlaxoSmithKline(GSK) and its majority-owned Viiv Healthcare unit. Viiv, of which Glaxo owns 76.5%, recently filed for approval for its anti-HIV drug, dolutegravir. If the drug is approved, it is… Read More »
This has been a month where spinoff news has been dominated by a massive deal, the spin off of AbbVie(ABBV) by Abbott Laboratories(ABT). Yet, the vast majority of spinoffs involve tiny companies. We’ve written about some of the most ridiculous. Today, we have an announcement from one, that, while slightly larger, is still a microcap. Oculus Innovative Sciences(OCLS)… Read More »
Last month, Elan(ELN) spun off Prothena(PRTA). As we wrote at the time, Elan gave Prothena $125 million in cash and a research team with no pipeline. Elan itself now consists mostly of Tysabri, a blockbuster drug on which it is partnered with Biogen Idec(BIIB). We have to admit, we knew very little about Prothena, so we were grateful… Read More »
When writing about a company whose key asset is in Kazakhstan, it is difficult to avoid Borat jokes, but we pledge to try our best. Geo Point Technologies(GNNC) has not traded since July 10, 2012, probably because it has one of the biggest bid/ask spreads we have ever seen(last trade: $1.70, bid, $.022, ask: $8.99). With just over… Read More »
One thing about John Malone- if there’s a way to make a deal more complicated, he’ll find it. We’ve written in the past about the upcoming Starz spin, but now it’s finally here, and the company has issued a press release detailing what will happen. For those arriving late, Liberty Media Corporation(LMCA,LMCB) will be spinning itself off. That… Read More »