Author Archives: Inelegant Investor
As we discussed previously, Microsoft(MSFT) had agreed to invest $300 million for a 17.6% stake in NOOK Media, which includes the digital and College assets of Barnes & Noble(BKS) including the NOOK device business. Barnes & Noble continues to own the remainder of the business. In today’s release, the company was careful to note that “As previously announced,… Read More »
It’s been a scant three months since Fiesta Restaurant Group(FRGI) was spun out of Carroll’s(TAST) but the new company has already produced impressive results in its first reported quarter. The stock, which began trading in May below $13, closed at $16.16 yesterday. Last week, Fiesta reported its results for the second quarter. The company showed strong comparable store… Read More »
Back in January, we reported that Comverse Technology(CMVT) would be spinning off subsidiary Comverse, Inc., leaving the parent with majority ownership of Verint(VRNT), as well as Starhome, a private company. We speculated at the time that the company would then follow up by distributing its Verint shares and winding down the holding company. Today, it was announced that… Read More »
What do you do when your drug discovery costs swamp your profits from a successful marketed drug. If you’re Elan Corporation(ELN), you spin off your drug discovery business with a bundle of cash, keeping your marketed drugs and late stage pipeline. Elan, an Irish biotech firm, is driven largely by Tysabri,a multiple sclerosis drug marketed with Biogen Idec(BIIB).… Read More »
Carl Icahn is not a patient man, but he also doesn’t easily give up. Throughout his storied career, he has profited from forcing companies to make tough decisions to unlock value. Icahn, who owns 9.64% of Oshkosh Corporation(OSK), lost a bruising proxy battle for six seats in January. At the time he had urged the company to reverse… Read More »
In the largest one day gain on a spinoff announcement we can recall, Dean Foods(DF) jumped over 40% yesterday after announcing it would be spinning off its WhiteWave-Aplro business. The Wall Street Journal reports that this is due to excitement about the company’s smaller organic business “which accounts for less than a fifth of group sales, but 40%… Read More »
Long time stock columnist Gene Marcial(now of Forbes) thinks McGraw-Hill(MHP) is “the new and potentially robust growth- and-value stock play, as it gets closer to splitting up into two companies“. Marcial says that the stock , which has risen from $34 last August to over $49, may have more room to go up in the next year. Some bulls… Read More »
John Malone is at it again. Liberty Media Company(LMCA), a former tracking stock that was spun out from his core Liberty Interactive(LINTA), will be spinning off its Starz subsidiary. The Starz spinoff will contain the operating assets of Liberty Media, including the Starz and Encore premium cable networks. Liberty Media’s assets after the spin will primarily be its… Read More »
After the close this afternoon, together with reporting its earnings, Dean Foods(DF) announced it would conduct an IPO for part of its WhiteWave-Alpro division, and subsequently distribute the rest to its shareholders. We have not yet read through the S-1 filing, which can be found here. From the earnings release, we learn: Separately, Dean Foods announced today that… Read More »
There are many hundreds of thousands of words in the English language, and zoetic is not one of the more common. The word, meaning “of or relating to life”, is the inspiration for Zoetis, the new name for Pfizer’s (PFE) soon to be independent Animal Health business. After over a year of speculation as to how Pfizer would… Read More »
Rejoice, oh lovers of oddly named companies. Prepare, chronic mis-pronouncers. The North American Grocery business of the crafty Kraft(KFT) will be spun off and trade under the new ticker KRFT. The stub will be renamed Mondelez(this rhymes with Oh Puhhleez) International, despite our valiant efforts to stop this awful name, and trade under the ticker MDLZ. Speaking of… Read More »
Remember dial up internet? Remember Juno and NetZero? United Online(UNTD) owns both brands and continues to generate cash flow from its legacy dial up business, though it continues to decline. The company has used this cash to pay a nearly 10% dividend, and to diversify its revenue stream by acquiring other businesses. Yesterday, United decided it was time… Read More »
It’s been a few quarters since Orchard Supply Hardware(OSH) was spun off from Sears Holdings(SHLD). The stock continues to trade at similar levels to where we felt it was a reasonable buy soon after its spinoff. Yesterday, the company issued a brief press release which contained three critical pieces of information. Comparable Store Sales were up 0.9% –… Read More »
That was quick. Weeks after its spinoff from Hilshire Brands(HSH), the former Sara Lee, DE Master Blenders 1753(DEMBF) announced today that it had found accounting irregularities, and would be restating results. These are definitely words no investor wants to hear, and they tend to get bigger the more they get looked at. Here is how the company describes… Read More »
Spinoffs are supposed to be a clean break; an opportunity for two new companies to seek their own fortunes. But, as David Nicklaus points out at the St. Louis Post Dispatch, when things go sour with the child, the former parent may still be on the hook. He writes about Patriot Coal (PCXCQ) which was spun off from… Read More »