Weekly Update (HAVAS, ANGI)

April 4, 2025

 

Agenda for Live Call

1) Havas Investment Case

2) Thoughts on Angi Inc Spin-off

3) Updates on All Recommendations

4) Answer Your Questions

Now let’s move on to my regular update.

Weekly Update

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It’s basically a chat room where we discuss what’s going on in the special situation market:

Here are a few things we discussed this week:

1. Q&A related to new idea: HAVAS

2. Discussion on tariffs

2. Magnera’s exposure to tariffs

Recent Spin-off

This week, IAC Inc (IAC) spun off Angi Inc (ANGI). The first day of trading was April 1st.

Angi operates the largest digital marketplace for home services in the U.S., connecting homeowners with contractors across Angi’s Ads and Leads platform (formerly HomeAdvisor/Angie’s List) and Services (pre-priced jobs fulfilled via Angi’s network), with

ANGI has fallen sharply despite no tariff exposure.

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From a valuation perspective, ANGI looks very cheap.

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Angi doesn’t have any perfect comps, but it is trading at a discount to its closest public comps.

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I see significant upside for the stock.

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Spin-off Links

Engineers, Good with Numbers, Bad at Deadlines, Hawkward at Parties: $ECG Everus Construction Group

  • Good overview of ECG

Recommendations Updates

  1. HAVAS. Havas is a recent spin-off from Vivendi. Havas delivered record financial results in 2024, with net revenue of €2,736 million (+1.5% y/y) and all-time high adjusted EBIT of €338 million (12.4% margin). The company exited 2024 in a net cash position of €211 million, providing a strong balance sheet to fund growth and shareholder returns. Despite recently posting strong results, Havas shares have languished. Insiders are buying and the company is trading at a big discount to all public peers across the board (P/E, EV/EBIT, EV/Revenue, dividend yield). Following approval at its shareholding meeting on May 28, 2025, Havas will pay a €0.08 (6.2% implied yield) dividend and will start buying back stock (10% share repurchase authorization will be approved). Incentives are aligned to maximize shareholder value given the Bollore family owns 31% of Havas. The CEO, Yannick Bolloré, has been aggressively buying HAVAS stock. In total he has spent €49 million and now personally owns 3% of shares outstanding. I see ~46% upside.


Spin-off Calendar

Upcoming Spin-off Calendar | Completed Spin-off Calendar

Current Positioning

(updated once a month)

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Hope you had a great week!

Rich

Disclaimer:

Rich Howe, owner of Stock Spin-off Investing (“SSOI”), currently is long LSYN, IDT, MEDXF, GTX, AAF, IAC, UNTC, TSVT, HGHAF, HHH, SEG, WDC, and MAGN.  All expressions of opinion are subject to change without notice. This email is provided for informational purposes. Please do your own due diligence and consult with an investment adviser before buying any stock mentioned on www.stockspinoffinvesting.com.’