Author Archives: Inelegant Investor
Last November, Citrix Systems(CTXS) announced plans to spin off its GoTo business. This week, it announced that the spinoff would culminate in a merger with LogMeIn(LOGM) in a Reverse Morris Trust transaction. The transaction, which is expected to be tax-free, will leave Citrix shareholders owning 50.1% of the new company. LogMeIn’s management team, led by CEO Bill Wagner,… Read More »
Yesterday, Zedge(ZDGE) completed its spinoff from IDT(IDT). The press release is short on details, focusing on the usual boundless optimism associated with a new spinoff. Tom Arnoy, co-founder and CEO of Zedge, said, “Since our inception, we have been focused on developing an exceptional service that enables Zedgers to express their identity, feelings, tastes and interests on their… Read More »
Hilton Worldwide Holdings(HLT) announced this morning that it has filed Form 10 registration statements for two previously announced spinoffs of its real estate and timeshare businesses. CEO Christopher J. Nassetta said the spins will be completed later this year. Following the transactions, Nassetta will continue to lead Hilton, which will be an asset-lite fee-based business. On a pro forma… Read More »
Eric Schmidt has a message for investors who think that Google’s shift to the Alphabet(GOOG) holding company structure and businesses increasingly far afield from search indicate a future breakup- don’t hold your breath. Schmidt, Alphabet’s Executive Chairman, spoke on the topic last week. When asked during Bloomberg’s Breakaway Summit on Wednesday whether the multifaceted company with a plethora… Read More »
Serial spinner IDT(IDT) has set the date for its spinoff of Zedge(ZDGE). IDT shareholders as of May 26 at 5PM will receive one share of Zedge for every three IDT shares that they own. The spinoff will be effective at 11:59PM on June 1. The company’s most recent form 10 can be found here. We recently had the… Read More »
Last October, Yum Brands(YUM) finally agreed to spin off its China business under pressure from investors including Keith Meister of Corvex Management. Corvex owns 5.2% of Yum, and Meister sits on the board. Yum, parent of brands including Pizza Hut, KFC, and Taco Bell, has 7,205 restaurants in China which collectively earn over $1 billion each year. Currently,… Read More »
Earlier today, we reported that former Dean Foods(DF) chair Tom Davis and Las Vegas gambler Billy Walters were being charged with insider trading related to Dean Foods’ 2012 announcement that it would be spinning off WhiteWave(WWAV). We also noted that professional golfer Phil Mickelson was said to have been given the tip. Bloomberg now reports that Mickelson is… Read More »
CNBC reports this morning that former Dean Foods(DF) chair Thomas Davis will be charged with insider trading, along with well-known Las Vegas gambler William “Billy” Walters. Davis had resigned last year as rumors swirled of the investigation into insider trading based on nonpublic information regarding Dean’s Whitewave(WWAV) spinoff. Walters is believed to have passed the tip along to professional… Read More »
Founded by Steven and Mitchell Rales, Danaher Corporation(DHR) is one of the most successful business stories of the last three decades. One of just 44 companies with a cumulative total return of greater than 10,000% over that time period(it’s the 6th best performer), this powerhouse will be spinning off Fortive, its Professional Instrumentation and Industrial Technologies business, on July… Read More »
It may sound like an alien planet, but Honeywell(HON) shareholders should prepare to see AdvanSix in their portfolios early next year. On the heels of a rebuffed and withdrawn offer for United Technologies(UTX), Honeywell has decided to slim down, announcing that it will spin off its Resin and Chemicals by early-2017. The new company which will be named… Read More »
Harvard Apparatus Regenerative Technology(HART) announced that it has changed its name to Biostage, effective April 1. It will now trade under the BSTG symbol. The company was spun off by Harvard Bioscience(HBIO) in November 2013. Why change the name? The name change reflects the company’s broad commitment and expertise in pioneering the development of bioengineered organ implants for… Read More »
As we’ve discussed previously, Nuvectra(NVTR) has jumped around quite a lot since its March 14 spinoff from Greatbatch(GB). Yesterday was big up day for Nuvectra which close up 18.12%, to $5.41. This coincided with the company releasing an investor presentation, the first communication it has had with shareholders since it gained its independence. The presentation addresses the size… Read More »
Hey, we know what you’re thinking. You wish there was a way to invest in a pure-play ringtone and phone wallpaper company. Well, thanks to IDT(IDT), you will not have to wish much longer. IDT has filed a form 10 as the first step in spinning off its majority stake in Zedge. Zedge, in case you missed it… Read More »
Nearly a decade ago, we wrote about Armstrong World Industries(AWI) as it emerged from a long bankruptcy that resulted from asbestos liabilities. At the time, we thought the stock looked expensive. Ten years later, the stock price is basically in the same place, and Armstrong is spinning off its flooring business, completing a dismantling begun with the 2012… Read More »
Nuvectra(NVTR) had an awful first week following its spinoff from Greatbatch(GB), as we pointed out last Friday. At Friday’s close, it was trading well below its cash position, and it carries no debt. Investors who sought to exploit this spread have been rewarded today with a steadily rising stock that has risen over 30%. The stock trades below… Read More »