News & Press
In 2021’s mid-year update, The MoneyShow has featured two of Jim Osman and The Edge’s top conviction ideas – Harley-Davidson, Inc. (HOG) and IAC/InterActiveCorp (IAC). See inside for more details.
Merck’s New Spinoff Organon Shows How Women’s Health Can Provide Fertile Ground For Investment. Here’s Why.
It may be 2021, but the issue of women’s health – especially reproductive rights, birth control and fertility issues – is one which still provokes heated debate and makes headlines around the world. Considering the global women’s health market is predicted to be worth $50 billion by 2025, it seems somewhat ironic that one of the more silent voices tends to be that of Big Pharma.
Heavy hitters are getting out of the game and moving away from investment in the sector, with multi-national pharmaceutical company Merck & Co., Inc. (MRK) Spinning off Organon & Co. (OGN) earlier this month. However, according to analysis from The Edge, it looks like OGN may be the big winner here.
Founded in the Netherlands in 1923, OGN became a world-leading pioneer in contraceptives, and while it’s going back to its roots post-Spin, it has clearly renewed its focus on medical breakthroughs and future-proofing its brand. Stepping into a space which is largely ignored and focusing on ground-breaking contraceptives could be the secret weapon in its armory.
The word “green” is never far from the headlines right now. Talk to any Gen Z’er or millennial and they will list the ways we need to do better for our planet. They’re not wrong, but the kind of “green” Wall Street gets excited about is the color of our dollar bills. Until now, that is. Here at The Edge, we’ve been wondering if it’s possible to save the planet and still make money.
The answer? Yes. The stage is certainly set for climate friendly investments to come into their own. Investors are catching up fast with the power of renewables, and as the world gets into gear with regard to climate change, all the smart money is going on clean energy producers.
A Buried Scandal, Shedding Of Assets, And Forthcoming Spinoff Means Substantial Upside For Bausch Health
Having a troubled past under the name Valeant, Bausch Health Companies (BHC) saw its leverage balloon. The stock price fell over 90% from its high and forced the company to make major changes including a name change, shedding assets to reduce debt, and an upcoming Spinoff of its eye health segment.
The Spinoff was originally expected to be completed by the first quarter of 2021 but has since been pushed to Q3 2021. However, the fact BHC can consider a Spinoff in the first place indicates a remarkable turnaround. The Edge is convinced this is one of the most extraordinary re-inventions of the last few years.
After a year in which the world has become even more reliant on the tech giants, it looks like FAANGs are set to get an even bigger bite of the cherry – as analysis from The Edge daringly predicts.
The global dominance and brand awareness of Facebook, Amazon, Apple, Netflix and Google need no explanation here, but after more than a year of a global lockdown due to Covid-19, consumers have relied upon tech giants more than ever before.
But, as US Government regulators like the FTC and House of Representatives’ Subcommittee on Antitrust continue to have Big Tech and monopolistic practices in their crosshairs, if FAANGs follow The Edge’s playbook, they have at least +50% upside for investors over the next five years.
The game plan? Spinoffs.
On April 6, 2021, The Edge CEO & Founder Jim Osman joined the MoneyShow Virtual Expo to discuss how value catalyst ideas help investors to make returns in volatile markets, as well as highlighting a major call for break-ups at leading tech firms. Please see below for the full recording of the presentation. The slides are available on request.
Wall Streetʼs latest craze for SPACs has reached a new frontier: China.
These so-called blank check companies — which raise money, go public and merge with a private company, typically within two years — have already raised $97 billion in 2021, according to SPACinsider, more than all of last year. And though the vast majority of that money has been raised by American sponsored SPACs, Chinese firms are starting to get in on the action.
But critics say that listing in the U.S. through this trendy shortcut may show something else entirely. SPACs have come under fire because they allow investors to put money into a company with no stated purpose until it finds a target and they facilitate public listings, without requiring private companies to file extensive paper work. “Pre-merger, there are no disclosures,” says Alex Korda, an analyst at New Jersey-based The Edge Consulting Group who has done research on the returns of SPACs over the past five years. “When they say blank check, it is a double entendre — there is no clarity on what type of company they are going to buy.”
Stocks sold in an extraordinary torrent of recent block trades are poised for further selling pressure in the weeks ahead.
Goldman Sachs Group and Morgan Stanley have spearheaded more than $20 billion of these unregistered stock sales since Friday, according to people familiar with the matter, following a margin call on the family office of former Tiger Management trader Bill Hwang. The ensuing volatility could be just the start of a rough stretch for these stocks, based on one measure of performance for prior share sales the banks have brought on behalf of holders.
But the selling pressure looks more like a buying opportunity to those with longer time horizons, according to a special situations research firm. “We are looking at names where not only are there block trades, but also names that are falling in sympathy,” The Edge Consulting Group Chief Executive Officer Jim Osman said in an interview. “Forced selling is where investors who have more than a five-minute view can make some of the best investments ever.”
In November 2020, insiders CEO Anthony Jabbour and CFO Bryan Hipsher bought shares at the mid-$26 level. Then, on February 11, 2021, both Jabbour (spending $998K) and Hipsher (spending $116K) bought again, this time at the mid-$23 level.
This is a major positive indicator for value creation. According to the world’s top insider buying expert George Muzea, insiders buying so soon after an IPO is seen as a positive indicator for potential performance and is worth paying attention to these situations.
Mega-cap technology companies should consider Spinoffs of major businesses, as this would both reduce the risk of antitrust action against them and result in strong upside for the stocks, according to the research firm The Edge.
Should they Spinoff businesses like Instagram, YouTube, or Amazon Web Services, FAANG stocks — a reference to a group that includes Facebook, Apple, Amazon, and Google-parent Alphabet — could see upside of more than 50% over the next five years in a bull-case scenario, analyst Jim Osman wrote.