News & Press

IAC Has Created $128bn of Value for Shareholders & There’s More To Come. Here’s Why…

IAC Has Created $128bn of Value for Shareholders & There’s More To Come. Here’s Why…

What happens when metrics are at the higher end of expectations? Government stimulus money has run dry and mostly everything is priced in. What do you do next? Smart managements have recognized hidden value inside themselves and have given shareholders enormous returns. Specifically with Spinoffs.

Even before the Vimeo Spinoff, in their Q1 2021 Shareholder Letter, the company claims nearly $100 billion of value has been created since Mr. Diller took control of what became IAC in 1995. IAC is currently only a $12 billion market cap company. The Edge puts the value creation now nearer to $128 billion, with more on the way.

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TechInAsia – Why Traveloka may have been wise to give up SPAC route

TechInAsia – Why Traveloka may have been wise to give up SPAC route

When the SPAC market was ultra hot, Indonesia’s Traveloka was among several notable firms in the region that planned to ride the wave. In April, the countryʼs leading travel unicorn was in advanced talks with Bridgetown Holdings, a special purpose acquisition company backed by billionaire investors Richard Li and Peter Thiel, to go public. By merging with Bridgetown, Traveloka could boost its valuation to US$5 billion.

But just a few months later, Traveloka hit the brakes on its SPAC plan. The company, however, says that it remains committed to its IPO goal and is pondering different options.

Investors make these pre-combination investments based on the SPACʼs management and the anticipation of making a good acquisition. There is minimal examination of the companyʼs financials, says Alexander Korda, The Edgeʼs global deals analyst. “The management is really only responsible for making an acquisition before that two-year period expires,” he elaborates. “They are not necessarily incentivized to bring a good company to market.” With SPACs eager to make a “quick buck,” the structure of the deals tends to benefit the management more than it does the end shareholders, Korda says.

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UBER’s Struggle Since The IPO & How It Has 50% Upside From Here

UBER’s Struggle Since The IPO & How It Has 50% Upside From Here

Uber Technologies, Inc. (UBER) listed on May 10th, 2019, with a build-up, subsequent fanfare, and a management promising big thigs for investors. It did not live up to this promise. After The Edge highlighted it was one to be avoided, a few days later after the snap-crackle-and-pop of the IPO, CEO Dara Khosrowshahi acknowledged Uber’s rocky trading debut and indicated “‘tough public market times could take months.” It would take almost another year and half for investors to get their money back.

The turnaround in the environment and the subsequent vaccine-led rally (which has helped the market including UBER) is still keeping investors underwater on their purchase, but now might be the time to load up. After top-class CEO Khosrowshahi bought $9 million in shares, The Edge believes there is significant upside for investors prepared to believe in the ride-sharing company’s vision. Khosrowshahi’s only other purchase was in November 2019, when he bought 200,000 shares at $26.75 and saw a six-month return of 30 percent, indicating a positive trading history.

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Insider Banks on Jackson Financial

Insider Banks on Jackson Financial

An interesting open market purchase took place recently (November 12) at Jackson Financial (JXN), observes Jim Osman, editor of the specialty advisory service, The Edge Spinoff Report.

Chad Myers, current Vice-Chairman of Jackson Holdings LLC (a division of Jackson Financial, Inc., JXN) bought shares for himself twice, his spouse and his son at an average price of $32.96. In 2020, Mr. Myers received a base salary of $680,000 and an annual bonus of $4.5 million.

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BuzzFeed Is About to Go Public — and Its Employees Are Walking Out in Protest

BuzzFeed Is About to Go Public — and Its Employees Are Walking Out in Protest

BuzzFeed shareholders will vote today to take the company public via a merger with a special-purpose-acquisition company, or SPAC. The deal is expected to close Friday. By Monday, the company could start trading under the stock ticker BZFD. Shares are expected to trade for around $10. Jonah Peretti, BuzzFeed’s CEO, has already sent out invitations for the ringing of the bell on the floor of NASDAQ and for a celebratory dinner at the Indian restaurant Sona, where he will perhaps chow down on $38 green pepper halibut and think about the some $64 million in stock options he holds and the fact that he will retain control of the company he founded. But not everyone is in the mood to uncork Champagne.

Earlier this year, Alex Korda, a deals analyst at the Edge, studied 115 SPAC deals and found that the ones in the communication-services sector were consistently among the worst performers. “Definitely this is one of the two major sectors that we found are best to avoid, or at least view with extreme caution,” says Korda. “In the first month, 22 percent of communication companies outperformed, meaning they made money and they outdid the index, while the other 78 percent flat out lost money,” he says. “By the third month and beyond, they were all losing money at a deepening rate through to the 12-month period.”

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The Edge Conference Presenter Jonathan Boyar’s Top Three Ideas

The Edge Conference Presenter Jonathan Boyar’s Top Three Ideas

The traditional approach to value investing is buying stocks that appear cheap relative to their book value. Most often these cheap stocks are discovered by investors who pour over financial statements and filings to establish stocks that others are underestimating. Independent research firm Boyar Research tears up the value-investing playbook by looking at value stocks through a private-equity lens, and demonstrating that finding value picks can be more than just looking at financial statements.

It’s a strategy that’s paid off. Boyar Research’s picks have consistently outperformed the market. Over a 7-year period, the average annualized return of stocks profiled by Boyar is 20%, almost 5% above that of the S&P 500. The outperformance is even more striking when it comes to microcap stocks. Over a 5-year period, Boyar’s average microcap returns are 28.7%, 17% above the S&P. According to Boyar’s website, approximately one in two ideas outperformed the index over a 1-, 3-, and 5-year period.

At The Edge conference on November 18, Jon Boyar, president of Boyar Research, shared three high-conviction buy ideas that demonstrate three different schools of thought in value investing.

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The Edge Conference Hosts Joel Greenblatt, with 6 Tips & 1 Special Sits Idea

The Edge Conference Hosts Joel Greenblatt, with 6 Tips & 1 Special Sits Idea

Over the years, Joel Greenblatt has surrounded himself with investing titans as a disciple of Warren Buffett and Ben Graham’s investing philosophies. He famously provided seed money to “Big Short” investor Michael Burry to start Scion Capita and received his own seed money from “junk bond king” Michael Milken. Between 1985 and 1994, the legendary investor averaged astonishing annual returns of 50% managing Gotham Capital — the predecessor of his current firm Gotham Asset Management.

This track record means many investors eagerly await Greenblatt’s take on the market environment. But these opportunities can be limited and infrequent. And he generally only tends to share his views with investors in his capacity as co-CIO of Gotham, to students as a teacher of value investing  at Columbia University, or to readers of his books, such as ‘You Can Be A Stock Market Genius.’

The Edge conference on November 18, hosted by top special situations investor Jim Osman, brought together seven industry experts who provided insights to help investors gain an edge in special-situation investing, while also raising money for the Alzheimer’s Association. Greenblatt shared his thoughts on opportunities in the current market.

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Playboy’s Metaverse Vision Can Double The Stock Price

Playboy’s Metaverse Vision Can Double The Stock Price

Following in the footsteps of Facebook’s decision to rename its brand as Meta, Playboy is revving up its entry to a Metaverse of digital and real-world opportunity as its successful SPAC launch will further transform and propel its brand into a global lifestyle.

PLBY’s share price has shot up 263 percent since it launched in January of 2021, largely down to stellar acquisitions, the likeable CEO Ben Kohn, and its slimmed-down team of forward-looking Gen Z and Generation Alpha marketing geniuses.

The Edge (the leading research source in under-performing companies for activist involvement, Special Situations and Spinoffs) interviewed exclusively over Zoom with Mr. Kohn to get the lowdown on his futuristic vision for the brand.

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Find Value Stocks by Analyzing Insider Trading

Find Value Stocks by Analyzing Insider Trading

Elon Musk and his brother Kimbal hit headlines last week when they respectively sold $8 billion and $109 million of Tesla shares. That sort of behaviour can serve as a price signal for investors, according to George Muzea, who tracks when directors and employees buy and sell shares in their companies.

“Insiders are basically value investors,” he said, speaking at the Edge Group‘s investing conference in London, which was raising money for Alzheimer’s research. “They buy into price weakness and sell into price strength.” For over 40 years, Muzea has tracked insider activity to make better investment decisions. In that time, he’s advised the legendary investor George Soros and even hosted his own TV show, the ‘Muzea Insider Report’.

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Post-Pandemic Bets: ECM Watch

Post-Pandemic Bets: ECM Watch

Meanwhile, special situations and activist investing will play outsized roles coming out of the pandemic, according to panelists at a conference on Thursday hosted by The Edge Consulting Group. Stocks including Uber Technologies Inc. and General Electric Co. contain hidden value that could be unlocked as the economy normalizes, investors and analysts said at the non-profit event benefiting The Alzheimer’s Association.

“A lot of people take a look at the academic research and say ‘If you bought all the spinoffs, did you outperform the market or didn’t you?’” Joel Greenblatt, co-chief investment officer for Gotham Asset Management, said in a presentation. “I think that’s the wrong question. The right question is ‘Are spinoffs a place to find mispriced securities?’”

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