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:  Baxter International Inc. (BAX)/Vantive, Jacobs Solutions Inc. (J)/Critical Mission Solutions, Western Digital (WDC)/HDD Business, MDU Resources Group (MDU)/Construction Services, Select Medical Holdings Corp. (SEM)/Concentra Business, Edwards Lifesciences Corp.(EW)/Critical Care Business, Holcim Ltd. (HOLN SW) / North American Business, Berry Global Group Inc. (BERY) / HH&S And Films Businesses (to merge w/ Glatfelter)

*New Entry this Month

RECENT PUBLICATIONS:

General Electric Co. (GE) / GE Vernova (GEV) – UPDATE

April 2, 2024

GE Completes Vernova Spin-Off; Update Post-Spin FVEs, Rate GE and GEV at NEUTRAL.

3M Co. (MMM) / Solventum (SOLV) – Update

April 1, 2024

MMM Completes Solventum Spin-Off; Adjust Post-Spin FVE’s; Rate MMM at NEUTRAL with $78 FVE; Rate SOLV at BUY with $103 FVE.

Radar Screen – April 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),  Goodyear Tire & Rubber, Inc. (FLT), IAC Inc. (IAC), Liberty Broadband Corp. (LBRDK), Masimo Corp. (MASI), Matthews International Corp. (MATW), Newpark Resources (NR), *Natura & Co. (NTCO), PAR Technology Corp. (PAR), RCI Hospitality Inc. (RICK), TFI International (TFII), TriMas Corporation (TRS)

*New Entry this Month

Spin-Off Report Calendar – April 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 – March 2024

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

European Spin-Off Compendium – April 2024

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

Bits & Pieces – March 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), IAC Corp. (IAC), Newpark Resources, Inc. (NR), RCI Hospitality Holdings, Inc. (RICK), Atlanta Braves Holdings (BATRK), TriMas Corporation (TRS)

RECENT INITIATIONS:  TriMas Corporation (TRS)

LATEST PUBLICATIONS & UPDATES:

UPDATE – Garrett Motion Inc. (GTX)

March 27, 2024

Revisiting our GTX thesis: Risk/Reward seems increasingly attractive amid slowdowns in BEV production/demand and the stock still trading, by our calculation, at a 17%-plus FCF yield. Our base case fair value estimate for GTX is $12.50 per share, reflecting an 8.5x multiple on our 2025E adjusted net income forecast of ~$313 million and a fully diluted share count of ~216 million (see Exhibit #5 on page 4). [Note: our valuation framework implies a multiple of less than 7.5x multiple (or a yield of ~13.5%) on projected 2025E free cash flow (FCF) of ~365 million (or ~$1.69 per share)].

UPDATE – Masimo Corporation (MASI)

March 25, 2024

MASI is evaluating the separation of its consumer business; reaffirms first quarter and full-year 2024E guidance; activist-investor Politan to nominate two more independent member to the Board. Our fair value estimate for MASI is revised is $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 (see Exhibit #3 on page 3).

TriMas Corporation (TRS)

March 21, 2024

TriMas, which reports three business segments – Packaging (52% of sales), Aerospace (27%) and Specialty Products (21%), is considering the sale of its energy-focused Arrow Engine business (currently housed in the Specialty Products segment) partly due to activist pressure from Barington Capital.  Additionally, the company could consider additional portfolio changes to increase its focus on the core Packaging sector, which may alleviate any conglomerate discount and improve longer-term operational performance with respect to growth, margins and capital allocation while also allowing investors to better target their investment dollars.  The case for maintaining the current operating structure is weakened by the poor share price performance in recent years.

Based on management guidance and commentary as well as peer and M&A valuations, TRS’s Packaging, Aerospace, and Specialty Products businesses could be valued at $26 per share, $14 per share, and ~$8.50 per share, respectively. Accounting for corporate costs and projected net debt of ~$14.50 per share yields a base case sum-of-the-parts fair value of $34 per share, 32% above the current share price.

Radar Screen – April  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), Goodyear Tire & Rubber, Inc. (FLT), IAC Inc. (IAC), Liberty Broadband Corp. (LBRDK), Masimo Corp. (MASI), Matthews International Corp. (MATW), Newpark Resources (NR), *Natura & Co. (NTCO), PAR Technology Corp. (PAR), RCI Hospitality Inc. (RICK), TFI International Inc. (TFII), TriMas Corporation (TRS)

*New Entry This Month

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:  Baxter International Inc. (BAX)/Vantive, Jacobs Solutions Inc. (J)/Critical Mission Solutions, Western Digital (WDC)/HDD Business, MDU Resources Group (MDU)/Construction Services, Select Medical Holdings Corp. (SEM)/Concentra Business, Edwards Lifesciences Corp.(EW)/Critical Care Business, Holcim Ltd. (HOLN SW) / North American Business, Berry Global Group Inc. (BERY) / HH&S And Films Businesses (to merge w/ Glatfelter)

*New Entry this Month

RECENT PUBLICATIONS:

General Electric Co. (GE) / GE Vernova (GEV) – UPDATE

April 2, 2024

GE Completes Vernova Spin-Off; Update Post-Spin FVEs, Rate GE and GEV at NEUTRAL.

3M Co. (MMM) / Solventum (SOLV) – Update

April 1, 2024

MMM Completes Solventum Spin-Off; Adjust Post-Spin FVE’s; Rate MMM at NEUTRAL with $78 FVE; Rate SOLV at BUY with $103 FVE.

Radar Screen – April 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),  Goodyear Tire & Rubber, Inc. (FLT), IAC Inc. (IAC), Liberty Broadband Corp. (LBRDK), Masimo Corp. (MASI), Matthews International Corp. (MATW), Newpark Resources (NR), *Natura & Co. (NTCO), PAR Technology Corp. (PAR), RCI Hospitality Inc. (RICK), TFI International (TFII), TriMas Corporation (TRS)

*New Entry this Month

Spin-Off Report Calendar – April 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 – March 2024

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

European Spin-Off Compendium – April 2024

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

Bits & Pieces – March 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:  Baxter International Inc. (BAX)/Vantive, Jacobs Solutions Inc. (J)/Critical Mission Solutions, Western Digital (WDC)/HDD Business, MDU Resources Group (MDU)/Construction Services, Select Medical Holdings Corp. (SEM)/Concentra Business, Edwards Lifesciences Corp.(EW)/Critical Care Business, Holcim Ltd. (HOLN SW) / North American Business, Berry Global Group Inc. (BERY) / HH&S And Films Businesses (to merge w/ Glatfelter)

*New Entry this Month

RECENT PUBLICATIONS:

General Electric Co. (GE) / GE Vernova (GEV) – UPDATE

April 2, 2024

GE Completes Vernova Spin-Off; Update Post-Spin FVEs, Rate GE and GEV at NEUTRAL.

3M Co. (MMM) / Solventum (SOLV) – Update

April 1, 2024

MMM Completes Solventum Spin-Off; Adjust Post-Spin FVE’s; Rate MMM at NEUTRAL with $78 FVE; Rate SOLV at BUY with $103 FVE.

Radar Screen – April 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),  Goodyear Tire & Rubber, Inc. (FLT), IAC Inc. (IAC), Liberty Broadband Corp. (LBRDK), Masimo Corp. (MASI), Matthews International Corp. (MATW), Newpark Resources (NR), *Natura & Co. (NTCO), PAR Technology Corp. (PAR), RCI Hospitality Inc. (RICK), TFI International (TFII), TriMas Corporation (TRS)

*New Entry this Month

Spin-Off Report Calendar – April 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 – March 2024

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

European Spin-Off Compendium – April 2024

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

Bits & Pieces – March 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), IAC Corp. (IAC), Newpark Resources, Inc. (NR), RCI Hospitality Holdings, Inc. (RICK), Atlanta Braves Holdings (BATRK), TriMas Corporation (TRS)

RECENT INITIATIONS:  TriMas Corporation (TRS)

LATEST PUBLICATIONS & UPDATES:

UPDATE – Garrett Motion Inc. (GTX)

March 27, 2024

Revisiting our GTX thesis: Risk/Reward seems increasingly attractive amid slowdowns in BEV production/demand and the stock still trading, by our calculation, at a 17%-plus FCF yield. Our base case fair value estimate for GTX is $12.50 per share, reflecting an 8.5x multiple on our 2025E adjusted net income forecast of ~$313 million and a fully diluted share count of ~216 million (see Exhibit #5 on page 4). [Note: our valuation framework implies a multiple of less than 7.5x multiple (or a yield of ~13.5%) on projected 2025E free cash flow (FCF) of ~365 million (or ~$1.69 per share)].

UPDATE – Masimo Corporation (MASI)

March 25, 2024

MASI is evaluating the separation of its consumer business; reaffirms first quarter and full-year 2024E guidance; activist-investor Politan to nominate two more independent member to the Board. Our fair value estimate for MASI is revised is $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 (see Exhibit #3 on page 3).

TriMas Corporation (TRS)

March 21, 2024

TriMas, which reports three business segments – Packaging (52% of sales), Aerospace (27%) and Specialty Products (21%), is considering the sale of its energy-focused Arrow Engine business (currently housed in the Specialty Products segment) partly due to activist pressure from Barington Capital.  Additionally, the company could consider additional portfolio changes to increase its focus on the core Packaging sector, which may alleviate any conglomerate discount and improve longer-term operational performance with respect to growth, margins and capital allocation while also allowing investors to better target their investment dollars.  The case for maintaining the current operating structure is weakened by the poor share price performance in recent years.

Based on management guidance and commentary as well as peer and M&A valuations, TRS’s Packaging, Aerospace, and Specialty Products businesses could be valued at $26 per share, $14 per share, and ~$8.50 per share, respectively. Accounting for corporate costs and projected net debt of ~$14.50 per share yields a base case sum-of-the-parts fair value of $34 per share, 32% above the current share price.

Radar Screen – April  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), Goodyear Tire & Rubber, Inc. (FLT), IAC Inc. (IAC), Liberty Broadband Corp. (LBRDK), Masimo Corp. (MASI), Matthews International Corp. (MATW), Newpark Resources (NR), *Natura & Co. (NTCO), PAR Technology Corp. (PAR), RCI Hospitality Inc. (RICK), TFI International Inc. (TFII), TriMas Corporation (TRS)

*New Entry This Month

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: General Electric (GE)/GE Vernova (GEV), Baxter International Inc. (BAX)/Vantive, 3M Co. (MMM)/Solventum (SOLV), Jacobs Solutions Inc. (J)/Critical Mission Solutions, Western Digital (WDC)/HDD Business, MDU Resources Group (MDU)/Construction Services, Select Medical Holdings Corp. (SEM)/Concentra Business, Edwards Lifesciences Corp.(EW)/Critical Care Business, Holcim Ltd. (HOLN SW) / North American Business, Berry Global Group Inc. (BERY) / HH&S And Films Businesses (to merge w/ Glatfelter)

*New Entry this Month

RECENT PUBLICATIONS:

3M Co. (MMM) / Solventum (SOLV) – Comprehensive Report

March 8, 2024

3M’s spin-off of Solventum, a health care business focused in surgical supplies, dental products, software solutions and purification/filtration, will be completed before the market open on April 1, 2024.  Our post-spin FV for the parent company, 3M Co. (MMM) is $80 per share and $121 per share for SOLV (given the one-for-four share distribution ratio and 19.9% ownership stake retained by MMM.)  Our view is largely based on an improved balance sheet at the parent to fund legal liabilities and a re-rating of the spin company to a higher valuation multiple, as opposed to being derived from a significant uptick in operations or market fundamentals, both of which may provide optionality.

General Electric Co. (GE) / GE Vernova (GEV) – Update

March 1, 2024

The separation will be completed on April 2, 2024 with GE shareholders receiving one share of GE Vernova for every four shares of GE owned.  Our pre-spin fair value estimate for General Electric is now $163 per share reflecting the increase in GEHC share price, and an increase of our GE Aerospace valuation multiple to 18x from 16x. We now fairly value shares of GE Vernova at $105 per share (10.0x our 2025 EBITDA estimate of $2.7 billion and accounting for the one-for-four share distribution ratio) and shares of GE Aerospace at $136 per share (18.0x our 2025 EBITDA estimate of ~$9.0 billion plus GEHC ownership). 

Radar Screen – March 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), Crown Holdings Inc. (CCK), FLEETCOR Technologies, Inc. (FLT), Goodyear Tire & Rubber, Inc. (FLT), IAC Inc. (IAC), Liberty Broadband Corp. (LBRDK), Masimo Corp. (MASI), Matthews International Corp. (MATW), Newpark Resources (NR), PAR Technology Corp. (PAR), RCI Hospitality Inc. (RICK), *TFI International (TFII), TriMas Corporation (TRS)

*New Entry this Month

Spin-Off Report Calendar – March 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 – March 2024

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

European Spin-Off Compendium – December 2023

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

Bits & Pieces – March 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), IAC Corp. (IAC), Newpark Resources, Inc. (NR), RCI Hospitality Holdings, Inc. (RICK), Atlanta Braves Holdings (BATRK), TriMas Corporation (TRS)

RECENT INITIATIONS:  TriMas Corporation (TRS)

LATEST PUBLICATIONS & UPDATES:

UPDATE – Garrett Motion Inc. (GTX)

March 27, 2024

Revisiting our GTX thesis: Risk/Reward seems increasingly attractive amid slowdowns in BEV production/demand and the stock still trading, by our calculation, at a 17%-plus FCF yield. Our base case fair value estimate for GTX is $12.50 per share, reflecting an 8.5x multiple on our 2025E adjusted net income forecast of ~$313 million and a fully diluted share count of ~216 million (see Exhibit #5 on page 4). [Note: our valuation framework implies a multiple of less than 7.5x multiple (or a yield of ~13.5%) on projected 2025E free cash flow (FCF) of ~365 million (or ~$1.69 per share)].

UPDATE – Masimo Corporation (MASI)

March 25, 2024

MASI is evaluating the separation of its consumer business; reaffirms first quarter and full-year 2024E guidance; activist-investor Politan to nominate two more independent member to the Board. Our fair value estimate for MASI is revised is $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 (see Exhibit #3 on page 3).

TriMas Corporation (TRS)

March 21, 2024

TriMas, which reports three business segments – Packaging (52% of sales), Aerospace (27%) and Specialty Products (21%), is considering the sale of its energy-focused Arrow Engine business (currently housed in the Specialty Products segment) partly due to activist pressure from Barington Capital.  Additionally, the company could consider additional portfolio changes to increase its focus on the core Packaging sector, which may alleviate any conglomerate discount and improve longer-term operational performance with respect to growth, margins and capital allocation while also allowing investors to better target their investment dollars.  The case for maintaining the current operating structure is weakened by the poor share price performance in recent years.

Based on management guidance and commentary as well as peer and M&A valuations, TRS’s Packaging, Aerospace, and Specialty Products businesses could be valued at $26 per share, $14 per share, and ~$8.50 per share, respectively. Accounting for corporate costs and projected net debt of ~$14.50 per share yields a base case sum-of-the-parts fair value of $34 per share, 32% above the current share price.

UPDATE – Tiptree Inc. (TIPT)

February 29, 2024

TIPT posts solid 4Q 2023 and full year results, driven by 25.4% sales increase at Fortegra, the company’s primary operating business.  In conjunction with 4Q 2023 results, the company declared a $0.06 dividend, which represents a 20% increase from the prior payout of $0.05.  On the conference call, there was no incremental commentary on the Fortegra IPO withdrawal or its private capital options.  We maintain a fair value of $24.50 per share, 45% above the current price.

Radar Screen – March  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), Crown Holdings Inc. (CCK), FLEETCOR Technologies, Inc. (FLT), Goodyear Tire & Rubber, Inc. (FLT), IAC Inc. (IAC), Liberty Broadband Corp. (LBRDK), Masimo Corp. (MASI), Matthews International Corp. (MATW), Newpark Resources (NR), PAR Technology Corp. (PAR), RCI Hospitality Inc. (RICK), *TFI International Inc. (TFII), TriMas Corporation (TRS)

*New Entry This Month

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), IAC Corp. (IAC), Newpark Resources, Inc. (NYSE: NR), RCI Hospitality Holdings, Inc. (NASDAQ: RICK), Atlanta Braves Holdings (BATRK), TriMas Corporation (TRS)

RECENT INITIATIONS:  TriMas Corporation (TRS)

LATEST PUBLICATIONS & UPDATES:

TriMas Corporation (TRS)

March 21, 2024

TriMas, which reports three business segments – Packaging (52% of sales), Aerospace (27%) and Specialty Products (21%), is considering the sale of its energy-focused Arrow Engine business (currently housed in the Specialty Products segment) partly due to activist pressure from Barington Capital.  Additionally, the company could consider additional portfolio changes to increase its focus on the core Packaging sector, which may alleviate any conglomerate discount and improve longer-term operational performance with respect to growth, margins and capital allocation while also allowing investors to better target their investment dollars.  The case for maintaining the current operating structure is weakened by the poor share price performance in recent years.

Based on management guidance and commentary as well as peer and M&A valuations, TRS’s Packaging, Aerospace, and Specialty Products businesses could be valued at $26 per share, $14 per share, and ~$8.50 per share, respectively. Accounting for corporate costs and projected net debt of ~$14.50 per share yields a base case sum-of-the-parts fair value of $34 per share, 32% above the current share price.

UPDATE – Tiptree Inc. (TIPT)

February 29, 2024

TIPT posts solid 4Q 2023 and full year results, driven by 25.4% sales increase at Fortegra, the company’s primary operating business.  In conjunction with 4Q 2023 results, the company declared a $0.06 dividend, which represents a 20% increase from the prior payout of $0.05.  On the conference call, there was no incremental commentary on the Fortegra IPO withdrawal or its private capital options.  We maintain a fair value of $24.50 per share, 45% above the current price.

Radar Screen – March  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), Crown Holdings Inc. (CCK), FLEETCOR Technologies, Inc. (FLT), Goodyear Tire & Rubber, Inc. (FLT), IAC Inc. (IAC), Liberty Broadband Corp. (LBRDK), Masimo Corp. (MASI), Matthews International Corp. (MATW), Newpark Resources (NR), PAR Technology Corp. (PAR), RCI Hospitality Inc. (RICK), *TFI International Inc. (TFII), TriMas Corporation (TRS)

*New Entry This Month

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: General Electric (GE)/GE Vernova (GEV), Baxter International Inc. (BAX)/Vantive, 3M Co. (MMM)/Solventum (SOLV), Jacobs Solutions Inc. (J)/Critical Mission Solutions, Western Digital (WDC)/HDD Business, MDU Resources Group (MDU)/Construction Services, Select Medical Holdings Corp. (SEM)/Concentra Business, Edwards Lifesciences Corp.(EW)/Critical Care Business, Holcim Ltd. (HOLN SW) / North American Business, Berry Global Group Inc. (BERY) / HH&S And Films Businesses (to merge w/ Glatfelter)

*New Entry this Month

RECENT PUBLICATIONS:

3M Co. (MMM) / Solventum (SOLV) – Comprehensive Report

March 8, 2024

3M’s spin-off of Solventum, a health care business focused in surgical supplies, dental products, software solutions and purification/filtration, will be completed before the market open on April 1, 2024.  Our post-spin FV for the parent company, 3M Co. (MMM) is $80 per share and $121 per share for SOLV (given the one-for-four share distribution ratio and 19.9% ownership stake retained by MMM.)  Our view is largely based on an improved balance sheet at the parent to fund legal liabilities and a re-rating of the spin company to a higher valuation multiple, as opposed to being derived from a significant uptick in operations or market fundamentals, both of which may provide optionality.

General Electric Co. (GE) / GE Vernova (GEV) – Update

March 1, 2024

The separation will be completed on April 2, 2024 with GE shareholders receiving one share of GE Vernova for every four shares of GE owned.  Our pre-spin fair value estimate for General Electric is now $163 per share reflecting the increase in GEHC share price, and an increase of our GE Aerospace valuation multiple to 18x from 16x. We now fairly value shares of GE Vernova at $105 per share (10.0x our 2025 EBITDA estimate of $2.7 billion and accounting for the one-for-four share distribution ratio) and shares of GE Aerospace at $136 per share (18.0x our 2025 EBITDA estimate of ~$9.0 billion plus GEHC ownership). 

Radar Screen – March 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), Crown Holdings Inc. (CCK), FLEETCOR Technologies, Inc. (FLT), Goodyear Tire & Rubber, Inc. (FLT), IAC Inc. (IAC), Liberty Broadband Corp. (LBRDK), Masimo Corp. (MASI), Matthews International Corp. (MATW), Newpark Resources (NR), PAR Technology Corp. (PAR), RCI Hospitality Inc. (RICK), *TFI International (TFII), TriMas Corporation (TRS)

*New Entry this Month

Spin-Off Report Calendar – March 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 – March 2024

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

European Spin-Off Compendium – December 2023

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

Bits & Pieces – March 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), Atlanta Braves Holdings (BATRK), Tiptree Inc. (TIPT), IAC Corp. (IAC), Newpark Resources, Inc. (NYSE: NR), RCI Hospitality Holdings, Inc. (NASDAQ: RICK)

RECENT INITIATIONS:  Newpark Resources, Inc. (NYSE: NR)

LATEST PUBLICATIONS & UPDATES:

UPDATE – Tiptree Inc. (TIPT)

February 29, 2024

TIPT posts solid 4Q 2023 and full year results, driven by 25.4% sales increase at Fortegra, the company’s primary operating business.  In conjunction with 4Q 2023 results, the company declared a $0.06 dividend, which represents a 20% increase from the prior payout of $0.05.  On the conference call, there was no incremental commentary on the Fortegra IPO withdrawal or its private capital options.  We maintain a fair value of $24.50 per share.

UPDATE – APi Group Corp. (APG)

February 28, 2024

APG posts roughly in-line 4Q 2023 results and issues modestly above consensus 2024E adjusted EBITDA guidance; plans to retire all of the Series B Perpetual Convertible Preferred Stock (owned by Blackstone & Viking); fair value increased to $35 per share (from $31 per share).

UPDATE – Masimo Corporation (MASI)

February 28, 2024

MASI tops consensus (and guidance) in 4Q 2023; maintains previous 2024E outlook; fair value increased to $129 per share (from $124 per share). 

Radar Screen – March  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), Crown Holdings Inc. (CCK), FLEETCOR Technologies, Inc. (FLT), Goodyear Tire & Rubber, Inc. (FLT), IAC Inc. (IAC), Liberty Broadband Corp. (LBRDK), Masimo Corp. (MASI), Matthews International Corp. (MATW), Newpark Resources (NR), PAR Technology Corp. (PAR), RCI Hospitality Inc. (RICK), *TFI International Inc. (TFII), TriMas Corporation (TRS)

*New Entry This Month

Product Specialist

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