Author Archives: Inelegant Investor
NovaGold(NG) has a great story. It owns a 50% interest in the Donlin Gold project in Alaska, which a recent feasibility study projects can average 1.5 million ounces of production at $409/oz for the first 5 years, as well as two other major prospects. It has a market cap of over $2 billion. It counts George Soros, John… Read More »
Sears Holdings(SHLD) issued a press release this morning announcing the completion of the Orchard Supply Hardware(OSH) spinoff. Sears Holdings Corporation (“Holdings,” “we” or “our”) today announced that it has completed its previously announced spin-off of its interest in Orchard Supply Hardware Stores Corporation (“Orchard”). Orchard is now independent from Holdings and its Class A Common Stock will begin… Read More »
Rouse(RSE) began trading on a when issued basis today in anticipation of its spin off next month from General Growth Properties(GGP). The stock, which opened at 14, moved steadily downward and closed the day at 12 on 55,819 shares traded. This represents a significant discount to book value and is below the $15/share, $200 million post-spin rights offering… Read More »
As the spinoff bubble continues to inflate, we come across deals that are more and more ridiculous. Today, we bring you Infrax Systems(IFXY), which will soon be spinning off Lockwood Technologies. This dust mite of a company has a market cap of under $500,000, making ArrayIt, last week’s tiniest find, look like a behemoth. In April 2011, Infrax,… Read More »
When WPX Energy(WPX)is spun off from The Williams Companies(WMB) on December 31 as we discussed previously, it will immediately join the S&P 500, replacing Compuware(CPWR). Parent company The Williams Companies will remain in the index as well. This continues a trend of large companies breaking into pieces large enough to themselves be constituents of the premier large cap… Read More »
Alexei Mordashov, who owns 82% of Severstal, is the second-richest man in Russia, and he still dreams of being the richest. Towards that end, Severstal announceda convoluted plan to spin off its Nord Gold unit. Severstal had previously hoped to float the unit in London, but pulled the plan when it became clear that the valuation would be… Read More »
We wrote briefly about Swire Pacific’s upcoming spin off of Swire Properties, but didn’t reference Swire’s comprehensive announcement. The record date for the conditional dividend will be January 6, 2012, with distribution in February. Overseas shareholders(non-Hong Kong) will have their shares in the new firm sold and receive cash instead. The distribution is conditional on receiving listing approval,… Read More »
Addressing earlier rumors, LG Chem, South Korea’s largest chemicals company, announced that it has no plans to spin off its battery unit, but will instead “strengthen” management, Reuters reports. Related articles LG Chem says considers battery plants in China, Europe (reuters.com) LG Chem Earnings Beat Estimates (online.wsj.com)
It’s been nearly 6 months since Ralcorp(RAH) announced plans to spin off Post Holdings and not much has changed. The interest that had been expressed by Conagra(CAG) never materialized into a transaction as Ralcorp management continued to reject buyout offers. Today, the company took the mildly unusual step of issuing a press release noting that it has amended… Read More »
We’ve previously discussed the Conoco Phillips(COP) split here and here. James Shell posts at Seeking Alpha his case for buying Conoco Phillips this week. Shell projects that the companies trade at a 5% discount as a result of being combined. Is that enough to justify the split? Does the trend to dismantle vertically integrated oil companies make sense,… Read More »
The largest public company in Egypt will soon be much smaller. Orsacom Construction Industries(ORSCY) will spin off its construction business to shareholders, retaining its fertilizer business.Nassaf Sawaris, the company’s chairman and CEO explained It has been apparent to us, that there is absolutely no rationale to justify the relationship between the fertiliser business [which exports to Europe, North… Read More »
A recent report on Sears Holdings(SHLD) by Morningstar analyst Paul Swinand lowers their fair value estimate for Sears by $10 per share due to the Orchard Supply(OSH) spinoff. Given the distribution ratio of 1 share of Orchard Supply for approximately every 22 of Sears, and Sears’ 80% ownership in Orchard Supply, this would seem to imply a per… Read More »
In another sign that spinoffs are the latest corporate fad, Arrayit Corporation(ARYC), a company with a market cap of just $2.4 million, has decided to spin off and distribute to shareholders its 78.18% stake in Arrayit Diagnostics. The company, which became public through a reverse merger several years ago, apparently feels that its vast and diverse business interests… Read More »
I know little more than nothing about Hong Kong stocks, but wanted to share the announcement that Swire Pacific will distribute 7 shares of Swire Properties for each 10 “A” shares or 50 “B” shares. The distribution will take place on January 18, to holders as of January 5. Do any of the more cosmopolitan folk out there… Read More »
TripAdvisor(TRIP) began trading as an independent company today after its spinoff from Expedia(EXPE). Later, founder and CEO Stephen Kaufer, granted a fascinating interview to Chris Dixon of TechCrunchspeaking about his experience as founder of TripAdvisor, and about the company’s evolution and history. The video is a must-watch for anyone considering investing in the company. Disclosure: The author holds… Read More »