Spinoff Odds & Ends: Taking A Closer Look At $RACE $KAR $SMTA $EPC $ZAYO

Sometimes it’s nice to take a break and let someone else do the work. In this week’s edition of Odds & Ends, we highlight some other sites that have dug a bit deeper into some upcoming or recent spinoff companies. It’s not quite OPM (other people’s money), but it’s always great to building off the work of others!

 

  1. Intrinsic Investing (Ensemble Capital) was fortunate to be invited to Ferrari’s (RACE) Monza SP1 and SP2 premier event in Italy. Oh yeah, they are also big fans of the stock believing the company is financially strong, the demand is secure and management is bringing it to the right place. The success of Sergio Marchionne’s Ferrari spinoff led to lots of talk of other OEM spins, but so far it’s been quiet on that front. In case you were wondering, writing a free blog about spinoffs doesn’t quite get you into the Ferrari owner club or even invited to Ferrari events.
  2. Clark Street Value offered some thoughts on a few different spinoffs. The site is positive about KAR Auction Services’ (KAR) upcoming salvage auto auctions spin (IAA). The site also recently provided an update on the 2018 spinoff of Spirit MTA REIT (SMTA) from Spirit Realty (SRC).
  3. YetAnotherValueBlog shares some ‘work in progress’ regarding Zayo (ZAYO) which is in the process of spinning off its enterprise business this year. The writeup barely mentions the spinoff plans because he thinks the company gets sold instead. He is actually ‘pretty meh’ on the spinoff plan. The piece goes pretty deep for being in progress, but shows off how deep you need to go in order to really understand a company.
  4. GlobalStockPicking is now long Edgewell Personal Care (EPC) as a ‘defensive’ play. Edgewell was a spinoff from Energizer Holdings (ENR), which Mario Gabelli is excited about this year.

Disclosure: Author holds no position in any stock mentioned