Author Archives: Inelegant Investor
From its spinoff from Biogen(BIIB) in February 2017 to the closing of its acquisition by Sanofi(SNY) in March 2018, Bioverativ’s tenure as a public company was short but profitable. From an initial price of $44.98 to the sale price of $105 in cash, Bioverativ stock, trading under the symbol BIVV, increased 133%. Not bad for 13 months. We… Read More »
Last month, Arconic(ARNC) announced suddenly that it had failed to find a buyer willing to pay enough for the whole company and was ending the sale process. Now, it is trying a different approach, announcing that it plans to spin off one of two businesses: Engineered Products & Forgings or Global Rolled Products. It will also attempt to sell… Read More »
Why is Henry Schein(HSIC) stock down sharply today? What is this CVET stock suddenly in my portfolio? We’ve been talking about it a lot, but Covetrus(CVET) is finally here. After the market closed yesterday, Henry Schein completed its spinoff of Covetrus, distributing Covetrus stock to shareholders. Covetrus immediately merged with Vets First Choice in a Reverse Morris Trust… Read More »
I’ve got a fever and the only cure is more Covetrus(CVET). Excitement mounts as we approach the completion of Henry Schein’s(HSIC) animal care spinoff and its merger with Vets First Choice in a Reverse Morris Trust transaction. The transaction is set to be completed today, February 7. Tomorrow, February 8, Covetrus stock will begin trading, and S&P will… Read More »
With Elliott and Starboard pushing for changes at eBay (EBAY), including the spinoffs of StubHub and Classifieds, there was more than the usual focus on eBay’s earnings report last week. The company reported record earnings, initiated a dividend and increased its buyback authorization, but signs of concern remain. Elliott, for one, is unimpressed. “eBay’s fourth quarter earnings provided… Read More »
In 2015, under pressure from legendary activist investor Carl Icahn, eBay(EBAY) chose to spin off PayPal(PYPL). While PayPal stock has performed remarkably since the spin-off, eBay stock’s performance has been decidedly prosaic. With this backdrop, not one, but two activist investors have entered the stage and begun pushing for changes. Of course, most relevant to us is that… Read More »
With apologies to the Beatles: Yesterday, Arconic’s stock price began to fade away An expected buyout had been pushed away Elliott needs to find another way It was this close to a deal, but Arconic(ARNC) announced yesterday that it was no longer pursuing a sale of the company. Last week, the Wall Street Journal had reported that a… Read More »
Just last week, Henry Schein(HSIC) announced the distribution date for its spinoff and Reverse Morris Trust transaction of Covetrus(CVET). Yesterday, the company announced a three day delay in the distribution due to the ongoing government shutdown. Whereas the company had formerly expected its registration to be effective on January 28, it now anticipates it will be effective no… Read More »
As we mentioned when Danaher(DHR) completed its spinoff of Fortive(FTV) in 2016, it has been one of the best performing stocks in history. 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… Read More »
Just weeks after choosing its name, Covetrus(CVET), not covfefe, and filing a registration statement, Henry Schein(HSIC) has set a date for the spinoff, and it’s soon. On February 4, Henry Schein will spin off HS Spinco to shareholders of record as of January 17. HS Spinco will subsequently merge with Direct Vet Marketing, Inc. (d/b/a Vets First Choice) in… Read More »
With the new year, a new start for Arlo Technologies(ARLO) as NETGEAR(NTGR) distributed the 84.2% of the company that it still owned to its shareholders on December 31. NETGEAR shareholders received 1.980295 shares of Arlo stock for every share of NETGEAR stock held. Also, concurrent with the transaction, NETGEAR’s founder, Chairman and CEO, Patrick C.S. Lo, resigned from the… Read More »
Perrigo Company(PRGO) is another company with a spinoff heritage returning to our pages. Back in 2013, Perrigo acquired the Elan Corporation for $8.6 billion. Elan had completed its spinoff of Prothena(PRTA) in late 2012. Perrigo subsequently sold the Tysabri royalty stream acquired with Elan to Royalty Pharma for up to $2.85 billion. Today, Perrigo’s market capitalization stands at… Read More »
It was just last week that the world first heard the name Covetrus. This week, Henry Schein(HSIC) filed a registration statement for HS Spinco, the Animal Health business it will be spinning off to merge in a Reverse Morris Trust transaction with Vets First Choice to form Covetrus. Covetrus stock is expected to trade on NASDAQ under the… Read More »
Back in April, Henry Schein, Inc.(HSIC) announced that it would be spinning off its Animal Health business and merging it with Vets First Choice in a Reverse Morris Trust transaction. At the time, the company projected the transaction would be completed in the fourth quarter of 2018, but it has since slipped into the first quarter of 2019. … Read More »
Five months after it floated 15.8% of Arlo(ARLO) in an IPO, NETGEAR(NTGR) will be spinning off its remaining stake to shareholders. For each share of NETGEAR held on December 17, shareholders will receive 1.980295 shares of Arlo common stock on December 31. The transaction is expected to be tax free to shareholders. Arlo has struggled since its IPO… Read More »