The Weekly Wrap-Up provides summaries of recent publications from Hidden Opportunities including links to the full-length research reports.  If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas. 

HIGH-CONVICTION RECOMMENDATIONS (LONG):

• Newpark Resources, Inc. (NR)
• TFI International Inc. (TFII)
• Luxfer Holdings (LXFR)
• TriMas Corporation (TRS)

RECENT INITIATIONS:

• Luxfer Holdings PLC (LXFR)

LATEST PUBLICATIONS & UPDATES:

UPDATE – U-Haul Holdings Co. (UHAL)

Close coverage of UHAL, as of Monday’s close, with shares trading roughly in-line with our fair value estimate 

Shares have appreciated ~49.5% (outperforming the S&P 500 and Russell 2000 Indexes by ~6% and ~23.5%, respectively) since our recommendation in May 2021.

While we continue to think U-Haul (formerly Amerco) is a high-quality operator in space where it has durable competitive advantages with shares trading roughly in line with our $76.50 per share fair value estimate (with bull and bear cases of $62-$90 per share) we prefer to maintain a disciplined approach and close coverage/withdraw our recommendation, as of today’s close.

We will continue to monitor shares for an opportunity to re-recommend if valuation shifts or incremental steps toward potential strategic alternatives materialize.

Radar Screen – October 2024

Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event

Companies discussed this month:  Albany International (AIN), Alphabet Inc. (GOOG), APi Group Corp. (APG), Bloomin’ Brands (BLMN), California Resources Corp. (CRC), Carrier Global Corp. (CARR), Crown Castle Inc. (CCI), FedEx Corporation (FDX), Goodyear Tire & Rubber, Inc. (GT), Masimo Corp. (MASI), Matthews International Corp. (MATW), Natura & Co. (NTCO), Netgear Inc. (NTGR), Newpark Resources (NR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK), TFI International Inc. (TFII), TriMas Corporation (TRS)

Product Specialist

Rich Albanese
ralbanese@pcsresearchgroup.com
+1 646-839-5566

The Weekly Wrap-Up provides summaries of recent publications from the Spin-Off Report including links to the full-length research reports.  If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas.

UPCOMING SPIN-OFFS AND EXPECTED COMPLETION DATES:

• Spectrum Brands (SPB) / Home & Personal Care Business – 4Q 2024
• Liberty Global (LBTYA) / Sunrise – November 4, 2024
• Western Digital (WDC) / HDD Business – 4Q 2024
• MDU Resources Group (MDU) / Everus Construction Group (ECG) – October 31, 2024
• Berry Global Group Inc. (BERY) / HH&S And Films Businesses (to merge w/ Glatfelter) – 4Q 2024
• Holcim Ltd. (HOLN SW) / North American Business – 1H 2025
• DuPont Inc. (DD) / Electronics and Water Business – 2H 2025
• Topgolf Callaway Brands Corp. (MODG) / Topgolf – 2H 2025
• Fortive Corp. (FTV) / Precision Technologies Business – Mid 2025
• SKF AB (SKFB SS) / Automotive Business – 1H 2026

RECENT PUBLICATIONS:

COMPREHENSIVE REPORT:  Spectrum Brands Holdings, Inc. (SPB)

October 18, 2024

On July 2, 2024, Spectrum Brands disclosed it had confidentially filed a Form 10 registration statement with the Securities & Exchange Commission (SEC) in connection with its previously disclosed separation plans for the Home & Personal Care (HPC) business.  SPB indicated on its 3Q F2024 conference call that given the on-going improvements at HPC, which is “exceeding last year by every key metric,” management remains confident that “the time is right to separate the business.” To that end, the company indicated it is still exploring multiple avenues for the separation of the business, including a sale, merger or spin-off transaction. Anecdotally, management expects to “provide an update on our next earnings call,” which has historically occurred in mid-November, “or sooner if there is news to share.” SPB’s chief executive, David Maura, further commented that, “Look, we’ve got multiple bids from financial players, strategic players on this asset. And we’ve got the spin path. And so we just got to work through all those options and see where we come out…there is a lot of interest in this asset.” 

Currently, Spectrum Brands, a diversified global branded consumer products and home essentials company, reports results in three segments: 1) Global Pet Care (GPC; 39% of consolidated F2023 sales and ~62% of adj. EBITDA)  2) Home and Garden (H&G; 18.5% of sales and ~24% of adj. EBITDA) and 3) Home & Personal Care (HPC; 42.5% of consolidated sales and ~14% of adj. EBITDA in F2023), whose products include small kitchen appliances (e.g., toasters, slow cookers, & air fryers, etc.) along with personal care products (e.g., hair dryers, straighteners, electric shavers, nose & ear trimmers, amongst others). On a consolidated basis, SPB generated $2.9 billion in September-ending F2023 sales, representing a ~7% year-over-year decline (~8% organically), with adjusted EBITDA of $303 million, a $20 million (or 7% year-over-year) increase, as pricing and cost reductions offset volume declines.

At current levels, shares of SPB trade at approximately 8.0x F2025E EV/EBITDA estimates, roughly in line with HPC peers (ex-outliers, such as Shark Ninja and P&G), but a discount to public comparisons for the GPC and H&G segments, which trade at ~12x (albeit in wide ranges of ~7.0x-16.5x). On the earnings front, it appears reasonable to forecast that, on a consolidated basis, SPB generate sales just shy of ~$3 billion in F2025 with adjusted EBITDA approaching ~$370 million. In terms of valuation, based on a blended multiple of ~9.0x while accounting for corporate costs, capitalized at the weighted segment average, as well as projected net debt implies a pre-spin, sum-of-the parts fair value of ~$2.9 billion or ~$101.50 per share (with bull and bear cases of $113 per share and ~$90.50 per share, respectively).

Considering the limited implied upside from current levels, which reflects a ~40% gain since its post-4Q 2023 low in November 2023 and a ~12% rise since its latest 3Q F2024 results in August 2024, our NEUTRAL initial stance seems appropriate. That said, the separation of Spectrum into two focused companies mirrors many characteristics of past successful spin-offs where a higher-growth, higher-margin business is expected to achieve a higher valuation as a standalone/independent entity while a lower-growth, lower-margin business, in this case focused on the consumer products sector, is expected to benefit from internal initiatives executed by a more focused management team (and investor base) with improved capital allocation priorities.  We will continue to monitor shares for any potential market, sector or company specific volatility for a more attractive pre-spin entry point, absent which we can envision that the typical post-spin shareholder turnover could present investment opportunities for both short-term and long-term investors.

ALERT:  Honeywell International to Spin-Off its Advanced Materials Business

October 8, 2024

Honeywell (HON) announces plans for a tax-free spin-off of its Advanced Materials business into an independent, publicly traded entity.  The transaction is expected to be completed in late 2025 or early 2026 and comes within the context of an overarching corporate strategy focusing on what management views as three “compelling megatrends” – automation, aviation and the global energy transition.  In terms of valuation, on this morning’s conference call, management indicated that given its outsized margin profile relative to peers, the standalone Advanced Materials (AM) business should trade at a premium to competitors such as Chemours (NYSE: CC) and Arkema (AKE FP).  Applying peer multiples across Honeywell’s business segments and accounting for corporate costs and projected net debt yields an initial sum-of-the-parts value estimate of $137.5 billion or $210 per share.

Radar Screen – October 2024

Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event

Companies discussed this month:  Albany International (AIN), Alphabet Inc. (GOOG), Bloomin’ Brands (BLMN), California Resources Corp. (CRC), Crown Castle Inc. (CCI), FedEx Corporation (FDX), Goodyear Tire & Rubber Co., Intel Corporation (INTC), Luxfer Holdings (LXFR),  Masimo Corp. (MASI), Matthews International Corp. (MATW), Netgear Inc. (NTGR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK), TFI International (TFII), TriMas Corporation (TRS)

Spin-Off Report Calendar – October 2024

Published monthly, The Spin-Off Calendar provides one-page summaries of every spin-off under coverage from the announcement date, followed by the filing of the Form 10 and continuing 60 days post completion.

Spin-Off Report Compendium – August 2024

Murray Stahl’s commentary on various investing themes and single stock recommendations.

European Spin-Off Compendium – September 2024

Murray Stahl’s commentary on various investing themes and single stock recommendations in Europe. 

Bits & Pieces – October 2024

Covers mispriced stub securities, tracking stocks and other arbitrage opportunities.

Product Specialist

Rich Albanese
ralbanese@pcsresearchgroup.com
+1 646-839-5566

The Weekly Wrap-Up provides summaries of recent publications from Hidden Opportunities including links to the full-length research reports.  If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas. 

HIGH-CONVICTION RECOMMENDATIONS (LONG):

• Newpark Resources, Inc. (NR)
• TFI International Inc. (TFII)
• Luxfer Holdings (LXFR)
• TriMas Corporation (TRS)

RECENT INITIATIONS:

• Luxfer Holdings PLC (LXFR)

LATEST PUBLICATIONS & UPDATES:

UPDATE – U-Haul Holdings Co. (UHAL)

Close coverage of UHAL, as of Monday’s close, with shares trading roughly in-line with our fair value estimate 

Shares have appreciated ~49.5% (outperforming the S&P 500 and Russell 2000 Indexes by ~6% and ~23.5%, respectively) since our recommendation in May 2021.

While we continue to think U-Haul (formerly Amerco) is a high-quality operator in space where it has durable competitive advantages with shares trading roughly in line with our $76.50 per share fair value estimate (with bull and bear cases of $62-$90 per share) we prefer to maintain a disciplined approach and close coverage/withdraw our recommendation, as of today’s close.

We will continue to monitor shares for an opportunity to re-recommend if valuation shifts or incremental steps toward potential strategic alternatives materialize.

Radar Screen – October 2024

Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event

Companies discussed this month:  Albany International (AIN), Alphabet Inc. (GOOG), APi Group Corp. (APG), Bloomin’ Brands (BLMN), California Resources Corp. (CRC), Carrier Global Corp. (CARR), Crown Castle Inc. (CCI), FedEx Corporation (FDX), Goodyear Tire & Rubber, Inc. (GT), Masimo Corp. (MASI), Matthews International Corp. (MATW), Natura & Co. (NTCO), Netgear Inc. (NTGR), Newpark Resources (NR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK), TFI International Inc. (TFII), TriMas Corporation (TRS)

Product Specialist

Rich Albanese
ralbanese@pcsresearchgroup.com
+1 646-839-5566

The Weekly Wrap-Up provides summaries of recent publications from the Spin-Off Report including links to the full-length research reports.  If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas.

UPCOMING SPIN-OFFS AND EXPECTED COMPLETION DATES:

• Spectrum Brands (SPB) / Home & Personal Care Business – 4Q 2024
• Western Digital (WDC) / HDD Business – 4Q 2024
• MDU Resources Group (MDU) / Everus Construction Group (ECG) – October 31, 2024
• Berry Global Group Inc. (BERY) / HH&S And Films Businesses (to merge w/ Glatfelter) – 4Q 2024
• Holcim Ltd. (HOLN SW) / North American Business – 1H 2025
• DuPont Inc. (DD) / Electronics and Water Business – 2H 2025
• Topgolf Callaway Brands Corp. (MODG) / Topgolf – 2H 2025
• Fortive Corp. (FTV) / Precision Technologies Business – Mid 2025
• SKF AB (SKFB SS) / Automotive Business – 1H 2026

RECENT PUBLICATIONS:

Honeywell International to Spin-Off its Advanced Materials Business

On October 8, 2024, before the market open, Honeywell International Inc. (NYSE: HON) announced plans for a tax-free spin-off of its Advanced Materials business into an independent, publicly traded entity.  The transaction, which does not require shareholder approval, remains subject to customary closing conditions, including the filing & effectiveness of a Form 10 registration statement with the Securities & Exchange Commission (SEC), receipt of various regulatory approvals and the final consent of HON’s Board of Directors, is expected to be completed by “the end of 2025 or early 2026”.

Currently, HON manages its business in four primary operating segments: 1) Aerospace; 2) Building Technologies; 3) Performance Materials & Technologies; and 4) Safety & Productivity Solutions. The Advanced Materials (AM) business, which presently resides as a unit within the Performance Materials & Technologies segment provides sustainability-focused specialty chemicals & materials under such brands as Solstice, Spectra, Hydranal and Aclar, is expected to generate sales of $3.7-$3.9 billion with an EBITDA margin profile greater than 25% in F2024.  As a standalone, management envisions the Advanced Materials company, which has a large-scale domestic manufacturing base, will benefit from more flexible/optimized capital allocation and allow investors to focus their capital more acutely.

In terms of background, this morning’s announcement comes within the context of HON’s overarching corporate strategy of focusing on what management views as three “compelling megatrends”, specifically automation, aviation and the global energy transition.  Toward that end, we note that the company spun-off of its home business, Residio (NYSE: REZI), and its transportation systems (i.e., turbochargers) business, Garrett Motion (NASDAQ: GTX) in 2018.  Anecdotally, while no detailed post-spin financial information has been provided as of yet, management indicated on this morning’s conference call that unlike its prior two spins the intent was not to set free the AM business with a similarly disadvantaged financial profile, both from an income statement (i.e., royalty) or balance sheet (i.e., un-related liability) perspective.  That said, while the company indicated that the spin-off would leave RemainCo with a similar long-term organic growth rate (forecasted to be ~4%-7%) and a similar margin profile but with less cyclicality (seemingly a reference to the historical swings in pricing within the AM business) and capital intensity (to the benefit of its free cash flow profile).  [Tangentially, HON’s chairman & chief executive, Vimal Kapur, indicated that “portfolio management” would be a hallmark of his tenure, suggesting other divestitures may be in the offing over time; to that end we would note that it was reported in the financial press that HON has considered selling its personal protective equipment business seeking a reported price tag of ~$2 billion and as well as the potential of taking its Quantinuum business public at a ~$10 billion valuation.]

In terms of financial guidance, in conjunction with 2Q 2024 results, HON updated its full-year outlook calling for consolidated sales of $39.1-$39.7 billion (up from $38.5-$39.3 billion), implying organic growth of 5%-6% (previously 4%-6%), with segment margin of 23.3%-23.5% (previously 23.8%-24.1%) and adjusted EPS of $10.05-$10.25 (previously $10.15-$10.45), implying growth of 6%-8% (previously 7%-10%).  Operating cash flow is projected to be $6.6-$7.0 billion (versus prior outlook of $6.7-$7.1 billion) with free cash flow of $5.5-$5.9 billion (compared with previous commentary of $5.6-$6.0 billion).  For 3Q 2024 specifically, management projected EPS growth of 3%-7% to $2.45-$2.55 (although on this morning’s conference call management notably indicated that intra-quarter trends were pointing toward earnings coming in toward “upper-half” of its previously articulated range).

In terms of valuation, on this morning’s conference call, management anecdotally indicated its thinking that given its outsized margin profile relative to peers the standalone Advanced Materials (AM) business should trade at a premium to competitors, such as Chemours (NYSE: CC) and Arkema (AKE FP), which trade at ~6x 2025E EBITDA, while a wider group, including ABB Ltd. (ABB SS), Emerson Electric (NYSE: EMR), Rockwell Automation (NYSE: ROK) and Schneider Electric (SU FP), bring the overall group’s average up to ~13.5x 2025E EBITDA.  Applying a 13x multiple to estimated Performance Materials & Technologies segment 2025E EBITDA implies value of ~$36.6 billion. Applying a 16.5x multiple, which is in-line with peers, such as Garmin Ltd. (NYSE: GRMN), L3Harris Technologies (NYSE: LHX), Northrop Grumman (NYSE: NOC), RTX Corp. (NYSE: RTX), Safran SA (SAF FP), and Thales SA (HO FP), to estimated 2025E Aerospace segment EBITDA implies a segment value of $84.8 billion. Next, the Buildings Technologies segment could be compared with Carrier Global (NYSE: CARR), Johnson Controls (NYSE: JCI), Schneider Electric (SU FP) and Siemens AG (SIE GY), which trade at ~15.5x 2025E EV/EBITDA.  Applying the peer multiple to estimated 2025 segment EBITDA implies a value of ~$36.6 billion.  Lastly, applying a 12.5x peer multiple, in-line with peers, such as 3M (NYSE: MMM), Kion Group (KGX GR), MSA Safety (NYSE: MSA), TE Connectivity (NYSE: TEL), Carrier Global (NYSE: CARR) and Zebra Technologies (NASDAQ: ZBRA), to the estimate 2025 segment EBITDA at Safety & Productivity Solutions, implies a segment value of ~$12.9 billion. Accounting for corporate costs as well as projected net debt yields an initial sum-of-the-parts fair value estimate of ~$137.5 billion or ~$210 per share (based on a diluted share count of ~655.5 million).

Radar Screen – October 2024

Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event

Companies discussed this month:  Albany International (AIN), Alphabet Inc. (GOOG), Bloomin’ Brands (BLMN), California Resources Corp. (CRC), Crown Castle Inc. (CCI), FedEx Corporation (FDX), Goodyear Tire & Rubber Co., Intel Corporation (INTC), Luxfer Holdings (LXFR),  Masimo Corp. (MASI), Matthews International Corp. (MATW), Netgear Inc. (NTGR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK), TFI International (TFII), TriMas Corporation (TRS)

Spin-Off Report Calendar – October 2024

Published monthly, The Spin-Off Calendar provides one-page summaries of every spin-off under coverage from the announcement date, followed by the filing of the Form 10 and continuing 60 days post completion.

Spin-Off Report Compendium – August 2024

Murray Stahl’s commentary on various investing themes and single stock recommendations.

European Spin-Off Compendium – September 2024

Murray Stahl’s commentary on various investing themes and single stock recommendations in Europe. 

Bits & Pieces – September 2024

Covers mispriced stub securities, tracking stocks and other arbitrage opportunities.

Product Specialist

Rich Albanese
ralbanese@pcsresearchgroup.com
+1 646-839-5566

The Weekly Wrap-Up provides summaries of recent publications from Hidden Opportunities including links to the full-length research reports.  If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas. 

HIGH-CONVICTION RECOMMENDATIONS (LONG):

• Newpark Resources, Inc. (NR)
• TFI International Inc. (TFII)
• Luxfer Holdings (LXFR)
• TriMas Corporation (TRS)

RECENT INITIATIONS:

• Luxfer Holdings PLC (LXFR)

LATEST PUBLICATIONS & UPDATES:

UPDATE – U-Haul Holdings Co. (UHAL)

Close coverage of UHAL, as of Monday’s close, with shares trading roughly in-line with our fair value estimate 

For context, shares have appreciated ~49.5% (outperforming the S&P 500 and Russell 2000 Indexes by ~6% and ~23.5%, respectively) since our most recent recommendation in May 2021.

While we continue to think U-Haul (formerly Amerco) is a high-quality operator in space where it has durable competitive advantages with shares trading roughly in line with our $76.50 per share fair value estimate (with bull and bear cases of $62-$90 per share) we prefer to maintain a disciplined approach and close coverage/withdraw our recommendation, as of today’s close.

We will continue to monitor shares for an opportunity to re-recommend if valuation shifts or incremental steps toward potential strategic alternatives materialize.

UPDATE – Masimo Corporation (MASI)

September 25, 2024

MASI gets a modest lift as founder & long-time CEO, Joe Kiani, resigns following activist-investor Politan’s successful takeover over the Board; concurrently, the company reaffirmed 3Q 2024 guidance and its commitment to the review of strategic alternatives for the Non-Healthcare/Consumer business

This morning, before the market open, MASI announced that founder and long-time chief executive (CEO), Joe Kiani, had decided to resign his role (having already lost is Board seat late last week amid a proxy battle with activist investor Politan Capital Management), effective immediately.

Michelle Brennan, who previously oversaw Johnson & Johnson’s (NYSE: JNJ) global medical device businesses and was appointed to the Board in June 2023 as part of Politan’s initial/previous proxy contest, will assume the role as interim chief executive.

Regarding the results of the proxy contest at last week’s Shareholder Meeting, Politan’s two nominees, Darlene Solomon and Bill Jellison (who by all accounts won decisively against MASI nominee’s Messrs. Kiani and Chavez), have joined the Board, effective immediately.

MASI indicated that it remains committed to the separation of its Non-Healthcare/Consumer business (from the core-Healthcare business) that was announced on March 25, 2024. (Recall, the bulk of the Non-Healthcare segment is comprised of Sound United, the home-audio company MASI purchased for $1.0575 billion in April 2022, which was ill received by investors considering that on the day the transaction was announced the stock plummeted nearly ~40% from ~$229 per share to $144 per share.)

Additionally, the company reaffirmed its 3Q 2024 guidance, which called for consolidated GAAP revenue of $495-$515 million, comprised of $335-$345 million at Healthcare and $160-$170 million at Non-Healthcare, with non-GAAP operating income and EPS of $70-$74 million and $0.81-$0.86, respectively.

Our fair value estimate for MASI remains $145 per share (with bull and bear cases of $157 and $133 per share, respectively), reflecting multiples of 21.5x and 9.0x, respectively, to our 2025E forecasts for the core Healthcare and Non-Healthcare segments and incorporates projected net debt.

Radar Screen – October 2024

Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event

Companies discussed this month:  Albany International (AIN), Alphabet Inc. (GOOG), APi Group Corp. (APG), Bloomin’ Brands (BLMN), California Resources Corp. (CRC), Carrier Global Corp. (CARR), Crown Castle Inc. (CCI), FedEx Corporation (FDX), Goodyear Tire & Rubber, Inc. (GT), Masimo Corp. (MASI), Matthews International Corp. (MATW), Natura & Co. (NTCO), Netgear Inc. (NTGR), Newpark Resources (NR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK), TFI International Inc. (TFII), TriMas Corporation (TRS)

Product Specialist

Rich Albanese
ralbanese@pcsresearchgroup.com
+1 646-839-5566

The Weekly Wrap-Up provides summaries of recent publications from Hidden Opportunities including links to the full-length research reports.  If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas. 

HIGH-CONVICTION RECOMMENDATIONS (LONG):

• Newpark Resources, Inc. (NR)
• TFI International Inc. (TFII)
• Luxfer Holdings (LXFR)
• TriMas Corporation (TRS)

RECENT INITIATIONS:

• Luxfer Holdings PLC (LXFR)

LATEST PUBLICATIONS & UPDATES:

UPDATE – U-Haul Holdings Co. (UHAL)

Close coverage of UHAL, as of Monday’s close, with shares trading roughly in-line with our fair value estimate 

For context, shares have appreciated ~49.5% (outperforming the S&P 500 and Russell 2000 Indexes by ~6% and ~23.5%, respectively) since our most recent recommendation in May 2021.

While we continue to think U-Haul (formerly Amerco) is a high-quality operator in space where it has durable competitive advantages with shares trading roughly in line with our $76.50 per share fair value estimate (with bull and bear cases of $62-$90 per share) we prefer to maintain a disciplined approach and close coverage/withdraw our recommendation, as of today’s close.

We will continue to monitor shares for an opportunity to re-recommend if valuation shifts or incremental steps toward potential strategic alternatives materialize.

UPDATE – Masimo Corporation (MASI)

September 25, 2024

MASI gets a modest lift as founder & long-time CEO, Joe Kiani, resigns following activist-investor Politan’s successful takeover over the Board; concurrently, the company reaffirmed 3Q 2024 guidance and its commitment to the review of strategic alternatives for the Non-Healthcare/Consumer business

This morning, before the market open, MASI announced that founder and long-time chief executive (CEO), Joe Kiani, had decided to resign his role (having already lost is Board seat late last week amid a proxy battle with activist investor Politan Capital Management), effective immediately.

Michelle Brennan, who previously oversaw Johnson & Johnson’s (NYSE: JNJ) global medical device businesses and was appointed to the Board in June 2023 as part of Politan’s initial/previous proxy contest, will assume the role as interim chief executive.

Regarding the results of the proxy contest at last week’s Shareholder Meeting, Politan’s two nominees, Darlene Solomon and Bill Jellison (who by all accounts won decisively against MASI nominee’s Messrs. Kiani and Chavez), have joined the Board, effective immediately.

MASI indicated that it remains committed to the separation of its Non-Healthcare/Consumer business (from the core-Healthcare business) that was announced on March 25, 2024. (Recall, the bulk of the Non-Healthcare segment is comprised of Sound United, the home-audio company MASI purchased for $1.0575 billion in April 2022, which was ill received by investors considering that on the day the transaction was announced the stock plummeted nearly ~40% from ~$229 per share to $144 per share.)

Additionally, the company reaffirmed its 3Q 2024 guidance, which called for consolidated GAAP revenue of $495-$515 million, comprised of $335-$345 million at Healthcare and $160-$170 million at Non-Healthcare, with non-GAAP operating income and EPS of $70-$74 million and $0.81-$0.86, respectively.

Our fair value estimate for MASI remains $145 per share (with bull and bear cases of $157 and $133 per share, respectively), reflecting multiples of 21.5x and 9.0x, respectively, to our 2025E forecasts for the core Healthcare and Non-Healthcare segments and incorporates projected net debt.

Radar Screen – October 2024

Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event

Companies discussed this month:  Albany International (AIN), Alphabet Inc. (GOOG), APi Group Corp. (APG), Bloomin’ Brands (BLMN), California Resources Corp. (CRC), Carrier Global Corp. (CARR), Crown Castle Inc. (CCI), FedEx Corporation (FDX), Goodyear Tire & Rubber, Inc. (GT), Masimo Corp. (MASI), Matthews International Corp. (MATW), Natura & Co. (NTCO), Netgear Inc. (NTGR), Newpark Resources (NR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK), TFI International Inc. (TFII), TriMas Corporation (TRS)

Product Specialist

Rich Albanese
ralbanese@pcsresearchgroup.com
+1 646-839-5566

The Weekly Wrap-Up provides summaries of recent publications from the Spin-Off Report including links to the full-length research reports.  If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas.

UPCOMING SPIN-OFFS AND EXPECTED COMPLETION DATES:

• Spectrum Brands (SPB) / Home & Personal Care Business – 4Q 2024
• Western Digital (WDC) / HDD Business – 4Q 2024
• MDU Resources Group (MDU) / Everus Construction Group (ECG) – October 31, 2024
• Berry Global Group Inc. (BERY) / HH&S And Films Businesses (to merge w/ Glatfelter) – 4Q 2024
• Holcim Ltd. (HOLN SW) / North American Business – 1H 2025
• DuPont Inc. (DD) / Electronics and Water Business – 2H 2025
• Topgolf Callaway Brands Corp. (MODG) / Topgolf – 2H 2025
• Fortive Corp. (FTV) / Precision Technologies Business – Mid 2025
• SKF AB (SKFB SS) / Automotive Business – 1H 2026

RECENT PUBLICATIONS:

Jacobs Completes the Spin-Off/Merger of Amentum

On September 27, 2024, after the market close, Jacobs Solutions Inc. (NYSE: J) completed the spin-off of its Critical Mission Solutions (CMS) & Cyber Intelligence (CI) businesses, which was simultaneously merged with privately held Amentum (AMTM) in a Reverse Morris Trust (RMT) transaction. Shareholders of record on September 23rd received one share of AMTM for every one share owned of J.  Amentum will replace Bath & Body Works (BBWI) in the S&P 500 Index.

We have historically observed that, to the extent it occurs, the typical shareholder turnover period persists for around 10-trading days following a spin’s completion (and in this case specifically we note a ~50% shareholder turnover rate would imply ~60 million shares changing hands). Post-spin AMTM’s inclusion in the S&P 500 Index could suggest a milder and more truncated turnover process than historical averages. We think that with the shares implicitly trading below 9x 2025E EV/EBITDA AMTM may be emerging as the more attractive near-term investment play (despite our positive view on the long-term secular growth prospects at post-spin parent Jacobs, on which we maintain our NEUTRAL rating).

The separation of Jacobs Solutions into two focused companies mirrors many characteristics of successful past spin-offs. To that end, the high-growth, higher-margin business will be listed independently and is expected to achieve a higher valuation over time as it establishes itself as a leader in the infrastructure engineering and technical solutions sectors, bolstered by strong secular tailwinds in its markets. Meanwhile, the lower-growth, lower-margin government services business will benefit from increased scale, diversification, and a renewed focus on higher-margin, value-added projects, positioning it to potentially catch up to its better-valued peers. That said, our current sum-of-the-parts (SOTP) valuation for Jacobs Solutions/Amentum does not suggest significant immediate upside, in and of itself. However, with the usual shareholder turnover that could be expected post-spin-off, we think investment opportunities are likely to arise post-spin for both short-term and long-term investors.

Radar Screen – October 2024

Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event

Companies discussed this month:  Albany International (AIN), Alphabet Inc. (GOOG), Bloomin’ Brands (BLMN), California Resources Corp. (CRC), Crown Castle Inc. (CCI), FedEx Corporation (FDX), Goodyear Tire & Rubber Co., Intel Corporation (INTC), Luxfer Holdings (LXFR),  Masimo Corp. (MASI), Matthews International Corp. (MATW), Netgear Inc. (NTGR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK), TFI International (TFII), TriMas Corporation (TRS)

Spin-Off Report Calendar – October 2024

Published monthly, The Spin-Off Calendar provides one-page summaries of every spin-off under coverage from the announcement date, followed by the filing of the Form 10 and continuing 60 days post completion.

Spin-Off Report Compendium – August 2024

Murray Stahl’s commentary on various investing themes and single stock recommendations.

European Spin-Off Compendium – September 2024

Murray Stahl’s commentary on various investing themes and single stock recommendations in Europe. 

Bits & Pieces – September 2024

Covers mispriced stub securities, tracking stocks and other arbitrage opportunities.

Product Specialist

Rich Albanese
ralbanese@pcsresearchgroup.com
+1 646-839-5566

The Weekly Wrap-Up provides summaries of recent publications from Hidden Opportunities including links to the full-length research reports.  If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas. 

HIGH-CONVICTION RECOMMENDATIONS (LONG):

• Garrett Motion Inc. (GTX)
• Newpark Resources, Inc. (NR)
• TFI International Inc. (TFII)

RECENT INITIATIONS:

• Luxfer Holdings PLC (LXFR)

LATEST PUBLICATIONS & UPDATES:

UPDATE – Masimo Corporation (MASI)

September 25, 2024

MASI gets a modest lift as founder & long-time CEO, Joe Kiani, resigns following activist-investor Politan’s successful takeover over the Board; concurrently, the company reaffirmed 3Q 2024 guidance and its commitment to the review of strategic alternatives for the Non-Healthcare/Consumer business

This morning, before the market open, MASI announced that founder and long-time chief executive (CEO), Joe Kiani, had decided to resign his role (having already lost is Board seat late last week amid a proxy battle with activist investor Politan Capital Management), effective immediately.

Michelle Brennan, who previously oversaw Johnson & Johnson’s (NYSE: JNJ) global medical device businesses and was appointed to the Board in June 2023 as part of Politan’s initial/previous proxy contest, will assume the role as interim chief executive.

Regarding the results of the proxy contest at last week’s Shareholder Meeting, Politan’s two nominees, Darlene Solomon and Bill Jellison (who by all accounts won decisively against MASI nominee’s Messrs. Kiani and Chavez), have joined the Board, effective immediately.

MASI indicated that it remains committed to the separation of its Non-Healthcare/Consumer business (from the core-Healthcare business) that was announced on March 25, 2024. (Recall, the bulk of the Non-Healthcare segment is comprised of Sound United, the home-audio company MASI purchased for $1.0575 billion in April 2022, which was ill received by investors considering that on the day the transaction was announced the stock plummeted nearly ~40% from ~$229 per share to $144 per share.)

Additionally, the company reaffirmed its 3Q 2024 guidance, which called for consolidated GAAP revenue of $495-$515 million, comprised of $335-$345 million at Healthcare and $160-$170 million at Non-Healthcare, with non-GAAP operating income and EPS of $70-$74 million and $0.81-$0.86, respectively.

Our fair value estimate for MASI remains $145 per share (with bull and bear cases of $157 and $133 per share, respectively), reflecting multiples of 21.5x and 9.0x, respectively, to our 2025E forecasts for the core Healthcare and Non-Healthcare segments and incorporates projected net debt.

UPDATE – TriMas Corporation (TRS)

September 25, 2024

TRS may have received a takeover overture from American Industrial Products (amid renewed activist pressure from Barington Capital); fair value remains $32 per share

Yesterday afternoon, StreetInsider reported TriMas may have been approached about a potential takeover by privately held American Industrial Products, which is a producer of filtration solutions, including extrusion packs, gaskets & seals, laser filters, cylinders, auto screens as well as the related-spare parts.

Per the report, TRS does not respond to rumors or speculation while American Industrial Products did not respond for comment.

Considering American Industrial Product’s focus, we would not be surprised by their interest in TRS’s Aerospace business (where products include fasteners, bolts, rivets, screws, & machine parts) but are somewhat skeptical on interest in the company’s entire portfolio, which includes a sizeable Packaging business (i.e., more than 50% of TRS’s consolidated sales and adj. EBITDA).

On July 28th, just prior to TRS reporting disappointing 2Q 2024 results, which precipitated a guidance reduction, Barington Capital, currently a ~1.5% holder (up from an initial 1.0% disclosed in December 2023), renewed its public calls for TriMas to either sell its Aerospace division and/or the entire company in an effort to remedy what the investor contends is TRS’s “long-term share price underperformance”.

On the guidance front, on the back of pronounced weakness at the Specialty Products segment, which was only modestly profitable in 2Q 2024 (on ~$30 million of sales), TRS lowered its full year 2024E adj. EPS outlook to $1.70-$1.90 (from $1.95-$2.15) on a consolidated sales growth outlook of 4%-6%.

By segment, management forecasted top-line growth of 9%-10% and 18%-22% at Packaging & Aerospace, respectively (versus prior commentary of 5%-9% and 14%-18%) with adj. EBITDA margins of 21%-23% and 18%-19% (compared with prior commentary calling for margins of 21.5%-23.5% and 16%-18%). Specialty Product segment sales are now expected to be down 25%-30% (compared with prior guidance of down 4% to up 1%) with a segment adj. EBITDA margin profile of 10%-14% (versus prior outlook of 17%-19%; see Exhibit 2 on page 2).

Our base case fair value estimate for TRS remains $32 per share, reflecting a blended multiple of ~9.0x on 2025E adj. EBITDA of ~$173 million, projected net debt of ~$319 million and a fully diluted share count of ~40.1 million.

Radar Screen – September 2024

Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event

Companies discussed this month:  Albany International (AIN), Alphabet Inc. (GOOG), APi Group Corp. (APG), Bloomin’ Brands (BLMN), California Resources Corp. (CRC), Carrier Global Corp. (CARR), Crown Castle Inc. (CCI), FedEx Corporation (FDX), Goodyear Tire & Rubber, Inc. (GT), Masimo Corp. (MASI), Matthews International Corp. (MATW), Natura & Co. (NTCO), Netgear Inc. (NTGR), Newpark Resources (NR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK), TFI International Inc. (TFII), TriMas Corporation (TRS)

Product Specialist

Rich Albanese
ralbanese@pcsresearchgroup.com
+1 646-839-5566

The Weekly Wrap-Up provides summaries of recent publications from the Spin-Off Report including links to the full-length research reports.  If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas.

UPCOMING SPIN-OFFS AND EXPECTED COMPLETION DATES:

• Jacobs Solutions Inc. (J) / Amentum (AMTM) – September 27, 2024
• Spectrum Brands (SPB) / Home & Personal Care Business – 3Q 2024
• Western Digital (WDC) / HDD Business – 2H 2024
• MDU Resources Group (MDU) / Everus Construction Group (ECG) – 2H 2024
• Berry Global Group Inc. (BERY) / HH&S And Films Businesses (to merge w/ Glatfelter) – 2H 2024
• Holcim Ltd. (HOLN SW) / North American Business – 1H 2025
• DuPont Inc. (DD) / Electronics and Water Business – 2H 2025
• Topgolf Callaway Brands Corp. (MODG) / Topgolf – 2H 2025
• Fortive Corp. (FTV) / Precision Technologies Business – Mid 2025
• SKF AB (SKFB SS) / Automotive Business – 1H 2026

RECENT PUBLICATIONS:

Alert:  SKF Plans to Separate and List Automotive Business in 1H 2026

September 17, 2024

On September 17, 2024, SKF AB (SKFB SS) announced its intent to separate (in 4Q 2025) and subsequently list its Automotive Business on the Stockholm NASDAQ in 1H 2026.  Roughly 8 years ago, under a prior leadership team, the company explored a similar separation but decided against it given the potential dis-synergies from, among other things, the overlap of research & development, production and supply chain capabilities. Subsequently, in January 2021, Rickard Gustafson assumed the role of chief executive and in early-2022 announced a “new strategic framework” for the company aimed at achieving a more de-centralized operating model and increasing the autonomy of its Automotive business. Later that year, activist-investor Cevian Capital disclosed a ~5% stake (currently ~8.4%) reportedly seeking a simplification of SKF’s organizational structure (akin to its prior efforts at ABB and CRH). On today’s conference call, management indicated that any potential dis-synergies will be overwhelmed by the value created by establishing two independent standalone companies (ostensibly though the potential re-rating of its higher margin Industrial business) as well as the potential for greater management focus and more specific capital allocation to accelerate growth and margins.

Currently, SKF reports two segments: 1) Industrial (71% of consolidated sales and ~88% of adj. EBITDA), which supplies a range of ball bearings, seals and lubrication systems to customers in, among others, the railroad, heavy industry and industrial distribution markets; and 2) Automotive (~29% of consolidated sales and 12% of adj. EBITDA), which provides bearings and seals to electrical and commercial vehicle manufacturers. Management expects, on a consolidated basis, a low single-digit organic sales decline, year over year, with a tax rate of 26% and capital expenditures of ~SEK 5 billion. Longer term, SKF targets a consolidated sales growth of ~5% (versus ~4% in 2023), an operating margin of 14% (versus 12.5% in 2023), a net debt to equity ratio of less than 40% (compared with ~14% in 2023), ROCE of ~16% (versus 15.4% in 2023), and a dividend pay-out ratio of ~50%.

SKF could be compared with Schaeffler AG (SHA GY), NSK Ltd. (6471 JT), Applied Industrial Technologies (NYSE: AIT), The Timken Co. (NYSE: TKR), Trellborg (TRELB SS), NN, Inc. (NASDAQ: NNBR) and RBC Bearings (NYSE: RBC), which trade at ~10x 2025E EV/EBITDA (albeit in a broad range, seemingly based on market focus, of ~3.5x-18.5x). Considering management’s guidance, long-term targets, consensus estimates and our sense of industry trends, applying a ~10x multiple to projected 2025E Industrial segment EBITDA implies value of ~ SEK 122 billion while applying a low-end multiple of 3.5x to 2025E Auto segment EBITDA implies value of nearly SEK 7 billion. Accounting for net debt and minority interest yields a preliminary fair value estimate of ~SEK 98.5 billion or ~SEK 216 per share (based on a diluted share count of ~455.5 million).

Radar Screen – September 2024

Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event

Companies discussed this month:  Albany International (AIN), Alphabet Inc. (GOOG), APi Group Corp. (APG), Bloomin’ Brands (BLMN), California Resources Corp. (CRC), Crown Castle Inc. (CCI),  FedEx Corporation (FDX),  Goodyear Tire & Rubber Co., Luxfer Holdings (LXFR), Goodyear Tire & Rubber, Inc. (GT), Masimo Corp. (MASI), Matthews International Corp. (MATW), Netgear Inc. (NTGR), Newpark Resources (NR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK), TFI International (TFII), TriMas Corporation (TRS)

Spin-Off Report Calendar -September 2024

Published monthly, The Spin-Off Calendar provides one-page summaries of every spin-off under coverage from the announcement date, followed by the filing of the Form 10 and continuing 60 days post completion.

Spin-Off Report Compendium – August 2024

Murray Stahl’s commentary on various investing themes and single stock recommendations.

European Spin-Off Compendium – September 2024

Murray Stahl’s commentary on various investing themes and single stock recommendations in Europe. 

Bits & Pieces – September 2024

Covers mispriced stub securities, tracking stocks and other arbitrage opportunities.

Product Specialist

Rich Albanese
ralbanese@pcsresearchgroup.com
+1 646-839-5566

The Weekly Wrap-Up provides summaries of recent publications from the Spin-Off Report including links to the full-length research reports.  If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas.

UPCOMING SPIN-OFFS AND EXPECTED COMPLETION DATES:

• Jacobs Solutions Inc. (J) / Amentum (AMTM) – September 27, 2024
• Spectrum Brands (SPB) / Home & Personal Care Business – 3Q 2024
• Western Digital (WDC) / HDD Business – 2H 2024
• MDU Resources Group (MDU) / Everus Construction Group (ECG) – 2H 2024
• Berry Global Group Inc. (BERY) / HH&S And Films Businesses (to merge w/ Glatfelter) – 2H 2024
• Holcim Ltd. (HOLN SW) / North American Business – 1H 2025
• DuPont Inc. (DD) / Electronics and Water Business – 2H 2025
• Topgolf Callaway Brands Corp. (MODG) / Topgolf – 2H 2025
• Fortive Corp. (FTV) / Precision Technologies Business – Mid 2025

RECENT PUBLICATIONS:

Alert:  SKF Plans to Separate and List Automotive Business in 1H 2026

September 17, 2024

On September 17, 2024, SKF AB (SKFB SS) announced its intent to separate (in 4Q 2025) and subsequently list its Automotive Business on the Stockholm NASDAQ in 1H 2026.  Roughly 8 years ago, under a prior leadership team, the company explored a similar separation but decided against it given the potential dis-synergies from, among other things, the overlap of research & development, production and supply chain capabilities. Subsequently, in January 2021, Rickard Gustafson assumed the role of chief executive and in early-2022 announced a “new strategic framework” for the company aimed at achieving a more de-centralized operating model and increasing the autonomy of its Automotive business. Later that year, activist-investor Cevian Capital disclosed a ~5% stake (currently ~8.4%) reportedly seeking a simplification of SKF’s organizational structure (akin to its prior efforts at ABB and CRH). On today’s conference call, management indicated that any potential dis-synergies will be overwhelmed by the value created by establishing two independent standalone companies (ostensibly though the potential re-rating of its higher margin Industrial business) as well as the potential for greater management focus and more specific capital allocation to accelerate growth and margins.

Currently, SKF reports two segments: 1) Industrial (71% of consolidated sales and ~88% of adj. EBITDA), which supplies a range of ball bearings, seals and lubrication systems to customers in, among others, the railroad, heavy industry and industrial distribution markets; and 2) Automotive (~29% of consolidated sales and 12% of adj. EBITDA), which provides bearings and seals to electrical and commercial vehicle manufacturers. Management expects, on a consolidated basis, a low single-digit organic sales decline, year over year, with a tax rate of 26% and capital expenditures of ~SEK 5 billion. Longer term, SKF targets a consolidated sales growth of ~5% (versus ~4% in 2023), an operating margin of 14% (versus 12.5% in 2023), a net debt to equity ratio of less than 40% (compared with ~14% in 2023), ROCE of ~16% (versus 15.4% in 2023), and a dividend pay-out ratio of ~50%.

SKF could be compared with Schaeffler AG (SHA GY), NSK Ltd. (6471 JT), Applied Industrial Technologies (NYSE: AIT), The Timken Co. (NYSE: TKR), Trellborg (TRELB SS), NN, Inc. (NASDAQ: NNBR) and RBC Bearings (NYSE: RBC), which trade at ~10x 2025E EV/EBITDA (albeit in a broad range, seemingly based on market focus, of ~3.5x-18.5x). Considering management’s guidance, long-term targets, consensus estimates and our sense of industry trends, applying a ~10x multiple to projected 2025E Industrial segment EBITDA implies value of ~ SEK 122 billion while applying a low-end multiple of 3.5x to 2025E Auto segment EBITDA implies value of nearly SEK 7 billion. Accounting for net debt and minority interest yields a preliminary fair value estimate of ~SEK 98.5 billion or ~SEK 216 per share (based on a diluted share count of ~455.5 million).

Update:  Jacobs (J) Sets September 27^th Distribution Date for the Amentum Spin-Off/Merger

September 13, 2024

On September 13, 2024, Jacobs Solutions Inc. (NYSE: J) announced that the spin-off of its Critical Mission Solutions (CMS) & Cyber Intelligence (CI) businesses, which will simultaneously merge with privately held Amentum (AMTM) in a Reverse Morris Trust (RMT) transaction, will be completed after the market close on Friday, September 27, 2024. Shareholders of record on September 23rd are set to receive one share of AMTM for every one share owned of J.

So-called “when-issued” (WI) trading for Amentum, which will trade on the New York Stock Exchange (NYSE), is expected to begin on (or about) September 24, 2024 (under the ticker AMTM WI) with “regular-way” trading beginning on Monday, September 30, 2024. Following completion, post-spin J will continue to trade “regular-way” under the NYSE ticker J although on (or about) September 24th it is expected that there will be two avenues to trade Jacbos common stock (J and J WI); to that end, shareholders that sell shares of J from the record date through the distribution date will relinquish their right to receive shares of Amentum while shareholders selling shares in the so-called “ex-distribution” market, under the ticker J WI, will be selling their Jacobs stock while retaining the right to receive shares of AMTM. (Additionally, shareholders selling in the “when issued” AMTM WI shares will be selling their right to receive the distribution of AMTM shares while retaining their Jacobs shares.)

As previously announced, immediately upon completion of the transaction, Jacob’s shareholders will own ~51% of Amentum with Jacobs’ owning 7.5% and an additional 4.5% of Amentum shares being placed in escrow as a continent consideration (to be released to shareholders depending on the achievement of certain F2024 operating profit targets with the first 0.5% being delivered to Jacobs and the remainder, to the extent required/earned, being earmarked for the company and its shareholders). All told, Jacobs shareholders are ultimately expected to own 58.5%-63% of Amentum.

Our Sum-of-the-Parts (SOTP) valuation for Jacobs Solutions is based on the derived valuations for both RemainCo (J) and CombineCo (AMTM). This includes the midpoint ownership in CombineCo and the retained equity stake within RemainCo. The Exhibit below shows that the midpoint of the SOTP valuation—14x EV/2025E EBITDA for RemainCo and 11x EV/2025E EBITDA for CombineCo—comes out to $143. This is roughly where Jacobs Solutions has recently been trading, in the mid-to-high $140s. In other words, the current market valuation for Jacobs aligns with the assumed valuation ranges for the two companies, post-separation.

Broadly, we think the upcoming spin-off of Jacobs Solutions into two focused companies mirrors many characteristics of successful past spin-offs. To that end, the high-growth, higher-margin business will be listed independently and is expected to achieve a higher valuation over time as it establishes itself as a leader in the infrastructure engineering and technical solutions sectors, bolstered by strong secular tailwinds in its markets. Meanwhile, the lower-growth, lower-margin government services business will benefit from increased scale, diversification, and a renewed focus on higher-margin, value-added projects, positioning it to potentially catch up to its better-valued peers. That said, our current sum-of-the-parts (SOTP) valuation for Jacobs Solutions does not suggest a significant upside, in and of itself, ahead of the impending separation. However, with the usual shareholder turnover that could be expected post-spin-off, we think investment opportunities are likely to arise post-spin for both short-term and long-term investors. Please see the Spin-Off Report dated September 6, 2024, for more information.

Radar Screen – September 2024

Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event

Companies discussed this month:  Albany International (AIN), Alphabet Inc. (GOOG), APi Group Corp. (APG), Bloomin’ Brands (BLMN), California Resources Corp. (CRC), Crown Castle Inc. (CCI),  FedEx Corporation (FDX),  Goodyear Tire & Rubber Co., Luxfer Holdings (LXFR), Goodyear Tire & Rubber, Inc. (GT), Masimo Corp. (MASI), Matthews International Corp. (MATW), Netgear Inc. (NTGR), Newpark Resources (NR), RCI Hospitality Inc. (RICK), Stanley Black & Decker (SWK), TFI International (TFII), TriMas Corporation (TRS)

Spin-Off Report Calendar -September 2024

Published monthly, The Spin-Off Calendar provides one-page summaries of every spin-off under coverage from the announcement date, followed by the filing of the Form 10 and continuing 60 days post completion.

Spin-Off Report Compendium – August 2024

Murray Stahl’s commentary on various investing themes and single stock recommendations.

European Spin-Off Compendium – September 2024

Murray Stahl’s commentary on various investing themes and single stock recommendations in Europe. 

Bits & Pieces – September 2024

Covers mispriced stub securities, tracking stocks and other arbitrage opportunities.

Product Specialist

Rich Albanese
ralbanese@pcsresearchgroup.com
+1 646-839-5566