The Spinoff Report » Research

2009 Year-End Performance Results of our Research & Recommendations

admin — Sun, 10 Jan 2010 02:54:27 +0000

Since Nov’ 2007, as a benchmark, our TSR Corporate Spinoff Portfolio of Research has outperformed the S&P 500 and MSCI World Index by 75% and 77% respectively (as at Dec’ 31 2009).

Click here to view our latest Performance Chart

EnCana / Cenovus – Pure Play Natural Gas Strategy to Pay Off Well

admin — Tue, 01 Dec 2009 00:37:04 +0000

Since its formation in 2002, EnCana has struggled to differentiate its two core assets. That struggle has especially hurt its oilsands interests, and has resulted in a share price that underperformed rivals. We believe the spinoff event will act as a positive catalyst enhancing shareholders value. We have an Absolute Buy rating on the parent (EnCana) and Buy rating on the Spinoff entity (Cenovus). Also an earlier Spinoff transaction of a Canadian company “Bankers Petroleum” operating in Oil & Gas sector which was done with a similar Spinoff rationale has performed exceedingly well. The Bankers Petroleum stock on which we had an Absolute Buy rating has generated 507% return since YTD. When we draw a parallel between the two spinoff stories, we are confident that this spinoff will also add value to shareholders.

Click here to view page 1 of the (58) page research note

The Spinoff Report – Excellent Two Year Performance Returns From Our Research & Recommendations

admin — Thu, 19 Nov 2009 16:41:16 +0000

The performance of our TSR Portfolio has continued to deliver. October was a another quality and stable month of growth from our Spinoff Investment Recommendations. It also saw us complete Two Full Years of Outperformance. Benchmarked against the MSCI World Index and S&P 500, our 20+ holdings have returned clients/investors 72% and 71.6% respectively.

Click here to view our Performance Chart

LMC (Entertainment) Split-Off: Games People Play

admin — Thu, 19 Nov 2009 16:40:24 +0000

Value discovery is a favorite play of management and this Split-Off primarily allows the market to value the entertainment assets more fairly. But the real benefit of the transaction would accrue to Mr. Malone, who will enjoy more voting power over DIRECTV, once the merger goes through. The transaction benefits him in two ways: More voting rights in DTV and value enhancement of his stake. Still, the transaction is beneficial to all stakeholders and we recommend a BUY.

Click here to view page 1 of the (44) page research note

The Spinoff Report – September Relative Perfomance

admin — Thu, 01 Oct 2009 16:42:11 +0000

Of the 40+ Spinoffs since Q4 2007, The Spinoff Report™ (TSR) Portfolio of Research has Outperformed the MSCI World Index and S&P500 by over 70%.

Click here to view our Performance Chart

Julius Baer/GAM – Pure Private Banking a Compelling Story While GAM to be a Turnaround Story

admin — Wed, 30 Sep 2009 16:42:41 +0000

The Julius Baer Holding split (on September 30th 2009) will result in two independently listed companies, with Julius Baer Group solely concentrating on providing high-quality services to private banking clients and GAM Holding focusing on active asset management. The extraordinary general meeting held on June 30th 2009, approved Julius Baer Holding to be renamed GAM Holding, with current shareholders of Julius Baer Holding to own two shares: GAM Holding (the current share) and Julius Baer Group (the newly listed company), which will be paid in the form of a dividend in kind (one for one).

Click here to view page 1 of the (39) page research note

OIL India Privatization – ‘Subscribe’ – Second largest E&P Company in India

admin — Wed, 02 Sep 2009 16:43:15 +0000

Oil India Ltd is soon to be privatized with an IPO through a 100% book building process with a price band of INR 950-1,050 per share and expects to raise funds in the range of INR 25.1bn- INR 27.8bn, through the fresh issue of shares. The IPO is valued at a FY10E P/B of 2.0x-2.2x. We believe this is reasonably priced as compared to its Peer average FY10E P/B of 3.1x

Click here to read page 1 of the (21) page research note.

The Spinoff Report – August Relative Two Year Perfomance

admin — Tue, 25 Aug 2009 17:24:55 +0000

The chart indicates that a portfolio built with only our researched Spinoffs has outperformed the MSCI World Index by 65% in less than two years. It also managed to outperform the S&P 500 by 62% over the same period. We started building the Spinoff Portfolio by allocating 100% of the investible amount in the Index. Funds were reallocated in a proportionate manner to companies on the verge of spinoff. Currently the fund only holds Spinoff entities (both parent and spinoffs) and has no index weightage.

Click here to view our Performance

PDE – Drilling Deep to Find Value

admin — Mon, 24 Aug 2009 17:25:31 +0000

On Aug 4, 2009, the board of directors of Pride International (PDE) made a strategic decision to focus on Deepwater and decided to Spinoff its Mat Jack-up rig, which caters to shallow water drilling. The Mat Jack-up rig revenues in the Gulf of Mexico (GoM) has been declining over the last few quarters with a sharp fall in utilization and day rates. Pride management is justified in dumping this low growth business to focus on the high growth Deepwater drilling business, which has high utilization and day rates.
All the steps preceding the Spinoff are complete. For each share of PDE that a shareholder owned at the close of business on Aug 14, 2009, the record date, they will receive 1/15 of a share of Seahawk (HAWK) stock on the Spinoff date.

Click here to read page 1 of the (43) page research note.

CareFusion Spinoff to unlock value for distribution giant

admin — Fri, 21 Aug 2009 17:26:05 +0000

Trotting along the paths of similar MedTech companies, CareFusion prepares to extricate itself from the shadows of its big brother (Cardinal Health) later this month. The Spinoff of CareFusion comes at a time of heightened activity of reforms in the Healthcare industry. We believe that this will be an appropriate time for the Spinoff to happen as it will earn time for both the companies to focus and leverage on their core strengths and prepare for post reforms era. Cardinal’s Board approved the Spinoff on July 10, 2009. Accordingly, CareFusion will distribute 80.1% of its common stock to Cardinal Health shareholders in the ratio of 0.5:1 while 19.9% stake will be retained by Cardinal Health (with a commitment to dispose this stake in less than 5 years).

Click here to read page 1 of the (50) page research note.