I was speaking at a conference once on corporate reorganizations, and after the speech, an investor came up to me and explained that he never really looked at these sorts of company events as investable situations, but that he remembered gaining shares of Chipotle Mexican Grill, Inc. (CMG) through owning McDonald's (MCD) back in 2006. He was chuffed when the price of the initial public offering doubled to $44 from $22 on the first day of trading. Incidentally, the investor I was speaking to.
News & Press
Forbes - Unlocking Hidden Value: Why Company Spinoffs Are Your Key To Maximizing Stock Market Returns
Jul 26, 2023
Forbes - The Secrets To Winning At The Stock Market Roulette Wheel
Jul 17, 2023
When it comes to the stock market, are you an investor or a gambler? Most would want to be labeled an investor, of course. Nobody calls themselves a gambler. The latter throws up ideas of addiction and recklessness. The public stigma of gambling disorder includes ideas that those who suffer from it are “greedy” and “irresponsible,” the premise that they are at fault for their difficulties, and a desire to avoid social interaction with them. Timing the markets is touted as a skill in investing.
Barron's - Amazon Stock Has Gained 50%. Why There’s Still Time to Buy
Jun 11, 2023
Big tech stocks worked fantastically well in the first half of 2023. Can shares of Apple, Amazon. com, Nvidia, and the rest of the magnificent seven keep it up? For Wells Fargo, the answer in the case of Amazon is an unqualified yes. SOTP valuations look at the value of all the different businesses inside a company, evaluating them separately to see if there is a big difference between the value of the individual units and the overall company. Sometimes investors are more attuned to SOTP math.
Bloomberg – Kenvue Success Puts Pressure on Peers With Consumer Health Arms
May 17, 2023
A strong trading start for Kenvue Inc. — the unit of Johnson & Johnson that makes brands including Tylenol — is showing similar pharmaceutical giants the benefits of spinning off their consumer health divisions. The stock’s 23% rally in just two weeks after its $4.4 billion initial public offering on May 3 is a dramatic demonstration of investor demand for profitable businesses amid a dearth of traditional IPOs. The success could very well drive J&J peers like Sanofi and Bayer AG to separate.
Forbes - The Psychology Of Investing. How To Avoid Losing.
May 1, 2023
“The majority is always wrong; the minority is rarely right.” A lasting quote from Norwegian playwright Henrik Ibsen. A concept I buy very much into. It’s much like the Pareto Principle, also known as the 80/20 rule, which states that roughly 80% of the effects come from 20% of the causes. The principle frequently serves as a benchmark for planning, prioritization, and decision-making. Individuals and organizations can make more informed and effective decisions and concentrate their efforts in.
Bloomberg – J&J’s Kenvue IPO Shows Rivals How to Spin Off Profits: ECM Watch
Apr 25, 2023
The spinoff of Johnson & Johnson’s consumer health business is the latest example of conglomerates looking to unlock value as investors flock to smaller, more nimble companies in a market environment more focused on profits than revenues. The company, which will be known as Kenvue Inc., set the price range Monday for an initial public offering that values the business at almost $43 billion based on the top end of $20 to $23. That valuation is in line with the estimate of Guggenheim analyst.
the market NZZ - Spinoff – What does the spinoff of parts of the company bring to the shareholders?
Apr 19, 2023
From General Electric and 3M to Novartis and ABB to Alibaba and Vale: The trend is towards outsourcing of corporate divisions. The Market shows how the transactions affect the stock price and provides three examples. So it’s no wonder spin-off announcements are piling up at the moment. “This has to do with the fact that the appetite for regular public openings has collapsed in the difficult stock market environment,” says Jim Osman of The Edge, an investment advisor focused on special.
Forbes - Investors Can Make Gains As Companies Break Up. These 3 Tech Giants Are Next.
Apr 12, 2023
If you haven’t noticed, recently some of the biggest household companies are getting smaller and some are just about to become smaller. DuPont, United Technologies, IBM, and General Electric are just a few of the multi-billion-dollar corporations that have decided that the sum of their parts is greater than the whole in recent years. Kellogg, 3M Co. and Danaher are scheduled to break up later in the year too. But why this phenomenon? Before we head down into the rabbit hole, something should be.
Barron's - 3M, Danaher, and Kellogg Are Spinoff Stock Plays
Apr 11, 2023
As the three-ring circus of rising interest rates, inflation, and bank failures plays out, investors may be searching for opportunities that are less exposed to the performance of the overall economy. Corporate spinoffs and separations are worthy of consideration. Screening for attractive spins, however, is more involved than just simply eyeballing price-to-earnings ratios. So Barron’s reached out to Jim Osman, founder of research firm The Edge, which identifies opportunities in special.
CGTN Europe Global Business on 2023/3/30 – Jim Osman, The Edge Group
Mar 31, 2023
Jim Osman, The Edge Group, joins CGTN Europe to discuss the potential value in other tech break-ups following the announcement of segment IPOs from Alibaba.