Barron’s Q&A with Jim Osman
These Stocks are “Special.” Here’s Why.
London native Jim Osman has his own, unconventional way to invest. A Wall Street veteran who spent almost a decade at Société Générale, he wasn’t happy pitching typical analyst research to institutional brokerage clients. Instead, he was drawn to special situations—underfollowed companies, unique circumstances, or difficult-to-understand investments.
Jim Osman disclosed three stocks we are constructive on, detailed below.
Pfizer, Inc. (PFE):
In July 2018, Pfizer, Inc. (PFE) announced the reorganization into three business segments, which we believed would lead to Spinoffs down the road. PFE followed this up in January 2019 with a Consumer Healthcare JV (later to be listed) with GlaxoSmithKline Plc (GSK LN). On July 29, 2019, PFE announced it will acquire Mylan NV (MYL) and combine it with its Upjohn generics segment, which will then be Spun off as a combined entity, effectively trimming PFE down to its patented drugs. Pre-spin, we are seeing insider purchasing on stock on the open market.
Match Group, Inc. (MTCH):
On June 30, 2020, Match Group, Inc. (MTCH) was completely spun from IAC/InterActiveCorp. (IAC) complete distribution of its 80.7% stake, resulting in the boost to MTCH’s free float (which precludes a potential inclusion on the S&P 500 Index) and the continued execution of IAC’s “anti-conglomerate” philosophy when it comes to its investments. We see a potential 40% upside and recommend a hold on MTCH for long-term benefits.
Madison Square Garden Entertainment Corp. (MSGE):
We continue to recommend accumulating our high conviction idea in Madison Square Garden Entertainment Corp. (MSGE), given early signs of a recovery for sports and venues reopening on the horizon. Additionally, despite delays to the construction of the MSG Sphere in Las Vegas, the company has ample financing available. Furthermore, 80% of sports fans have retained their tickets for next season, a silver lining for the company once events resume. We see a 55% discount from net asset value.