Top Activist funds and leading value advisors like TSR,
expect 2014/15 Spinoffs to distinctly outperform the market as an asset
class. Big companies have just got a lot bigger this year. Despite this,
break-ups are predicted to surge due to varying performing parts, a lack
of synergies and management strategy changes desired by smart investors.
A few recent examples being: Nelson Peltz on PepsiCo
(PEP), Carl Icahn with Chesapeake
Energy (CHK), and Dan Loeb on Sony
Corp (SNE). All three have value to be unlocked.
So top activists and global value funds are working with TSR, using
their fundamental analysis and six
year recommendation track record to predict what companies are best
to target or approach to break-up.
“Keeping it simple”, says Ryan Mendy of TSR; “our
analysis recognizes a year out prior to a Spinoff that it’s worth more
than investors are fundamentally and technically valuing it now”.
TSR’s latest research of Spinoff targets can be directly obtained
here.
Two examples of their one hundred targets.
From Europe, TSR’s research finds that German based Bayer
AG (ETR: BAYN / $105bn) can release value via doing a Spinoff of
its Material Science segment from its core Pharmaceuticals
business. Secondly, from the US; with new management now in, Johnson
Controls, Inc. (NYSE: JCI / $29bn) could do a three-way Spinoff
releasing shareholder value akin to ITT recently; breaking up its
Technology, Power and Automotive divisions.
In a recent market survey of leading funds, it is believed stocks
are [with markets so high] now in unchartered territory and that next
year [2014] will expose just how much high quality idea generation,
research and servicing by advisors will be needed to protect portfolios
from underperforming a lower expected growth market.
To contact TSR to review samples of their institutional analysis or
pricing, click
here. They also have a Free
Newsletter that you can sign-up to for alerts on new Spinoffs.
Copyright Business Wire 2013