Rich Howe

About Rich Howe

This author has not yet filled in any details.
So far Rich Howe has created 79 blog entries.

Why Do Spin-offs Outperform?

Why Do Spin-offs Outperform? While not every spin-off will outperform (I’ve learned this lesson the hard way), on average, they do quite well. See below for long-term performance of Bloomberg spin-off Index vs. the S&P 500. What drives the outperformance? Usually stock spin-offs begin trading at a low valuation. This occurs for a couple [...]

By |2019-07-01T14:40:01-04:00June 7th, 2019|Categories: Spin-off Market|4 Comments

Spin-off Links – May 2019

Spin-off Links - May 2019 Recent Members Only Research VF Corp - Kontoor Brands Spin-off Deep Dive Arlo - Good First Quarter Results DowDuPont - Initial Thoughts on DowDuPont’s Corteva Spin-off KAR Auction Services - Spin-off (IAA) Deep Dive Spin-off Resources An interview where I discuss my best and worst spin-off investments as [...]

By |2019-05-28T10:39:41-04:00May 28th, 2019|Categories: Spin-off Links|0 Comments

My Interview on Investing in Stock Spin-offs

My Interview on Investing in Stock Spin-offs Last week, I had the pleasure of speaking with Greggory Miller of Spin-off Investing Simplified. It was a great conversation and Gregg was kind enough to record the conversation. I've posted segments of the interview below for those who are interested. Why Invest in Stock [...]

By |2019-05-13T13:19:27-04:00May 13th, 2019|Categories: Spin-off Market|0 Comments

Spin-off Links – April 2019

Spin-off Links - April 2019 Recent Members Only Research Alcon Spin-off Thoughts New Dow Spin-off Analysis Livent Spin-off Overview KAR Auction Services Spin-off (IAA) Deep Dive Recently Announced Spin-offs On March 25, 2019, Naspers (NPSNY) announced that it will be spinning off its stake in Tencent (TCEHY) and other internet assets by the [...]

By |2019-04-29T10:51:21-04:00April 29th, 2019|Categories: Spin-off Links|0 Comments

Spin-off Links – March 2019

Spin-off Links - March 2019 Recent Spin-offs On February 8, Henry Schein (HSIC) spun off its animal animal health business and then immediately merged it with Vet’s First Choice to create a new company called Covetrus (CVET). The stock opened at $41 and has declined to $33.69. It’s still expensive trading at 19.2x [...]

By |2019-03-11T15:58:50-04:00March 11th, 2019|Categories: Spin-off Links|1 Comment

Eli Lilly / Elanco Animal Health: An Opportunity to Make $890 in a Week

LLY / Elanco Exchange Offer [This article was published to my premium subscribers last week, but I released it to the public to share the type of analysis that is available for premium subscribers.] Summary The LLY/ELAN exchange offer represents a very low risk way to make $890 in two weeks. My expected return [...]

By |2019-03-04T13:08:06-05:00March 4th, 2019|Categories: Spin-off Analysis|Tags: , |15 Comments

United Technologies – Spin-off Deep Dive

Summary On a sum-of-the-parts basis, UTX  is currently undervalued by ~20%. While it will take time for the value to be unlocked, the stock looks attractive at current levels. The break-up is schedule to be complete by mid 2020. Background Way back in August 2017, rumors first started to emerge that activist investors [...]

By |2019-02-22T08:14:04-05:00February 22nd, 2019|Categories: Spin-off Analysis|Tags: |0 Comments

Spin-off Links – January 2019

Stock Spin-off Links Update on Premium Service For a limited time, we are offering a 7 day free trial. Take advantage today as this opportunity will expire on Thursday, January 31. Stock spin-off recommendations published on the site have generated a 50.0% return versus the S&P 500 at 14.9% over the same time [...]

By |2019-01-28T23:28:27-05:00January 28th, 2019|Categories: Spin-off Links|0 Comments

Honeywell: Spin-offs Allow the Company to Focus on High Growth Areas

Honeywell: Spin Offs Allow the Company to Focus on High Growth Areas This article is a guest contribution by Nathan Parsh of Sure Dividend. Sure Dividend helps investors build high quality income portfolios for retirement. Companies can spin off portions of its businesses for a variety of reasons. Perhaps a certain segment no [...]

By |2019-01-04T10:29:29-05:00January 4th, 2019|Categories: Spin-off Analysis|Tags: , , |0 Comments

Arlo: A Cheap Way to Play The Connected Home Theme?

Arlo: A Cheap Way to Play The Connected Home Theme? Arlo Spin-off Background On December 31, 2018, Netgear (NTGR) spun off its remaining 62,500,000 shares of Arlo Technologies (ARLO), which is focused on smart video cameras, to existing shareholders. The first day of trading post this distribution will be today (January 2, 2018). [...]

By |2019-01-03T23:52:14-05:00January 2nd, 2019|Categories: Spin-off Analysis|Tags: , |1 Comment

Spin-off Links – December 2018

Stock Spin-off Links Recently Announced Spin-offs On November 5, 2018, FMC Corp (FMC) a chemical company focused primarily on the agriculture market, announced that it would spin off its remaining ~85% stake in Livent (LTHM), its pure-play lithium subsidiary, on March 1, 2019. FMC previously sold ~15% of LVTH in an October IPO. [...]

By |2018-12-24T23:40:00-05:00December 24th, 2018|Categories: Spin-off Links|0 Comments

United Technologies – Will the Break-up Unlock Value?

United Technologies - Will the Break-up Unlock Value? For over a year, United Technologies (UTX) management has been under pressure from large activist investor, Third Point, to break up the company. Management finally succumbed to that pressure and announced on November 26, that it would indeed move forward with a split. UTX will [...]

By |2018-12-19T10:13:25-05:00December 19th, 2018|Categories: Spin-off Analysis|Tags: |2 Comments

MSG Spin-off – What is the company worth?

Madison Square Garden Spin-off   Madison Square Garden (MSG) will be spinning of its sports business in the first half of 2019. Rationale for the Spin-off In a statement, MSG wrote: “The proposed separation of the sports and entertainment businesses would enable investors to more clearly evaluate each company’s assets and future [...]

By |2018-12-07T16:49:03-05:00December 6th, 2018|Categories: Spin-off Analysis|6 Comments

Spin-off Links – November 2018

Stock Spin-off Links Recent Spin-offs On October 29, 2018, Honeywell (HON) spun off, Resideo (REZI), its home products (thermostats, fire protection, etc.) and distribution business (security, fire protection, etc.) REZI has declined 30% since the spin-off. By my math, REZI trades at 7.2x 2019 EBITDA. I think a more appropropriate valuation would be [...]

By |2018-11-20T21:25:16-05:00November 20th, 2018|Categories: Spin-off Links|0 Comments

EQT Spin-off, Equitrans Midstream (ETRN)

Equitrans Spin-off EQT’s spin-off, Equitrans Midstream (ETRN), began regular way trading this morning under the ticker ETRN. Ever since EQT acquired Rice Energy in 2017, activists Jana and D.E. Shaw have urged a break up to separate the midstream and upstream businesses to increase shareholder returns. Equitrans midstream is a corporation and owns units [...]

By |2019-11-06T17:46:27-05:00November 13th, 2018|Categories: Spin-off Analysis|Tags: |1 Comment

Spin-off Links – October 2018

Stock Spin-off Links Recent Spin-offs On September 26, 2018, Fortive’s Automation and Specialty Business, completed its merger and split off. Fortive (FTV) shareholders who elected to exchange their shares received shares in Altra Industrial Motion (AIMC). Since the split off, AIMC shares have declined ~21%.  AIMC is currently trading at $32.87 and is [...]

By |2018-10-25T10:17:46-04:00October 25th, 2018|Categories: Spin-off Links|0 Comments

Stock Spin-off Case Study: Nuvectra – Microcap Spin-off Trading Below Net Cash

Stock Spin-off Case Study: Nuvectra - Microcap Spin-off Trading Below Net Cash Overview On March 13, 2016, Integer (NYSE: ITGR), formerly known as Greatbatch, Inc, spun off its neuromodulation business, Nuvectra Corporation (Nasdaq: NVTR). Integer’s core business was outsourced medical device manufacturing. Nuvectra, which was known as QiG Group, was a small money [...]

By |2018-10-17T17:14:03-04:00October 17th, 2018|Categories: Stock Spin-off Case Studies|Tags: |0 Comments

Spin-off Links – September 26, 2018

Stock Spin-off Links Premium Service In July, I launched a premium stock spin-off service.  For $29 per month, I cherry pick the most promising stock spin-off investments for your benefit. So far, I have two recommendations: First recommendation is a small cap spin-off in the real estate sector. My price target implies ~94% [...]

By |2018-09-26T11:31:07-04:00September 26th, 2018|Categories: Spin-off Links|0 Comments

Spin-off Links – August 29, 2018

Stock Spin-off Links Stock Spin-off Resources Just a heads-up, I recently published an updated stock spin-off resources page. I include a bunch of information including: A one page “What is a Spin-off?” guide Links to 11 stock spin-offs studies and articles (BCG, McKinsey, Credit Suisse, J.P. Morgan and many others) You can check [...]

By |2018-08-29T11:31:16-04:00August 29th, 2018|Categories: Spin-off Links|0 Comments

Spin-off Links – July 13, 2018

Stock Spin-off Links Premium Spin-offs In case you missed it, I recently launched a premium newsletter and my first recommendation. The stock is already up ~11% since I published my thesis, but plenty more upside remains. I’ve launched at the extremely affordable price of $29/month (less than a dollar per day) for a [...]

By |2018-07-13T10:54:13-04:00July 13th, 2018|Categories: Spin-off Links|0 Comments

Spin-off Links – June 1, 2018

Stock Spin-off Links Recent Spin-offs There have been a ton of recent spin-offs this week. Yesterday, CorePoint Lodging (CPLG), a La Quinta (LQ) spin-off, began trading. LQ had run up after it was profiled recently at the Sohn Contest and it looks like the thesis has already played out as the spin-off, CPLG, [...]

By |2018-06-01T18:50:48-04:00June 1st, 2018|Categories: Spin-off Links|0 Comments

Spin-off Links – May 18, 2018

Imminent Spin-offs La Quinta’s (LQ) spin-off, CorePoint (CPLG), will begin trading on May 31, 2018. Additional information here, here, here, and here. Euroseas’s (ESEA) spin-off, Eurodry, will begin trading on June 1, 2018. Additional information here. DXC Technology’s (DXC) spin-off, Perspecta (PRSP), will begin trading on June 1, 2018. Additional information here. Spirit Realty Capital’s (SRC) spin-off, Spirit MTA REIT (SMTA), will begin trading on June 1, [...]

By |2018-06-01T18:41:18-04:00May 18th, 2018|Categories: Spin-off Links|0 Comments

Spin-off Links – May 10, 2018

Recent Spin-offs On Tuesday, May 1, nVent (NVT) began trading on the NYSE.  It opened at $21 and but rallied and is currently trading in the $25 range. So much for indiscriminate selling! I think its fairly valued at current levels and wouldn’t be a buyer unless there was significant sell off. To view [...]

By |2018-06-01T18:44:03-04:00May 10th, 2018|Categories: Spin-off Links|2 Comments

Dover Spin-off (APY) to Begin Trading Tomorrow

Background Dover (DOV) announced in September 2017 that it was reviewing strategic options (sell, merge, or spin-off) for its energy business. A month later, activist investor, Dan Loeb, disclosed his DOV position and urged management to sell its energy business. Loeb noted, “Removing the cyclicality from Dover will greatly reduce earnings volatility, allowing investors to [...]

By |2018-07-02T19:42:47-04:00May 8th, 2018|Categories: Spin-off Analysis|Tags: |0 Comments

NVT Analysis Ahead of Regular-way Trading

Background nVent Electric (NVT), a spin-off from Pentair (PNR) will begin trading tomorrow. NVT provides products and solutions that connect and protect electric equipment which improves the equipment’s utilization, lowers costs, and minimizes downtime. On a proforma basis, NVT generated $2.1BN in revenue and $440MM in EBITDA in 2017. In the when-issued market, NVT has [...]

By |2018-07-02T19:48:22-04:00May 1st, 2018|Categories: Spin-off Analysis|0 Comments

Latest Thoughts on APVO and AFI

As a follow up to my last post, I wanted to share my latest thoughts on APVO and AFI. Aptevo Therapeutics (APVO) APVO has been on quite a roller coaster. I originally recommended the stock in September 2016 at $2.79 after it had declined ~35% from its opening price. Check out my original write up [...]

By |2018-04-27T18:56:58-04:00April 23rd, 2018|Categories: Stock Write-ups|Tags: |0 Comments

Updated Thoughts on LSYN and NVTR

Liberated Syndication (LSYN) I closed out this recommendation earlier in April 2018 at a price of $1.57 (closing price today was $1.60). From the time of my initial recommendation in December 2016, LSYN’s stock price increased 257% from $0.44 to $1.57. For full details on why I’m closing out my recommendation, see my recent post: [...]

By |2018-05-10T14:35:05-04:00April 18th, 2018|Categories: Stock Write-ups|Tags: , |0 Comments

LSYN – Closing Out Position with 257% Gain

Since our initial recommendation of Liberated Syndication (LSYN) in December 2016, the stock has increased from $0.44 to $1.57 (as of April 3, 2018) for a 257% return. We are closing out our BUY recommendation as we believe the stock is fairly valued and better risk-reward opportunity can be found elsewhere. This isn’t an urgent [...]

By |2018-04-28T10:54:28-04:00April 3rd, 2018|Categories: Stock Write-ups|Tags: |0 Comments
Go to Top