Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

Event-Driven

<ul><li>Gentherm (THRM) will complete its reverse Morris trust with Modine’s (MOD) Performance Technologies business (PT) on October 1, 2026.</li><li>Modine distributes the SpinCo shares that day, and they merge into Gentherm immediately, so Modine holders receive about 23.75MM Gentherm shares, roughly 43% of the combined company (my estimate).</li><li>There is no when-issued market. Modine trades with due bills through October 1 and begins trading ex-distribution on October 2, 2026. </li></ul>

Gentherm (THRM) will complete its reverse Morris trust with Modine’s (MOD) Performance Technologies business (PT) on October 1, 2026.Modine distributes the SpinCo shares that day, and they merge into Gentherm immediately, so Modine holders receive about 23.75MM Gentherm shares, roughly 43% of the combined company (my estimate).There is no when-issued market. Modine trades with due bills through October 1 and begins trading ex-distribution on October 2, 2026. 

THRM: A Diversification Deal I’d Rather Watch than Buy

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Gentherm Incorporated has moved further beyond its automotive roots by acquiring privately held Innovative Medical Equipment, or IME, in a transaction valued at approximately $34 million.</li><li>Announced in July 2026, the acquisition adds IME’s ThermaZone thermal therapy platform to Gentherm’s expanding medical portfolio and strengthens its exposure to non-opioid pain management, rehabilitation, and temperature-controlled treatment applications.</li><li>The transaction follows Gentherm’s FDA 510(k) clearance for ThermAffyx and supports management’s broader strategy of applying its thermal-management expertise across healthcare, home, office, and other non-automotive markets.</li></ul>

Gentherm Incorporated has moved further beyond its automotive roots by acquiring privately held Innovative Medical Equipment, or IME, in a transaction valued at approximately $34 million.Announced in July 2026, the acquisition adds IME’s ThermaZone thermal therapy platform to Gentherm’s expanding medical portfolio and strengthens its exposure to non-opioid pain management, rehabilitation, and temperature-controlled treatment applications.The transaction follows Gentherm’s FDA 510(k) clearance for ThermAffyx and supports management’s broader strategy of applying its thermal-management expertise across healthcare, home, office, and other non-automotive markets.

Gentherm’s IME Buyout Could Unlock Hidden Healthcare Value!

<ul><li>On September 23, 2026, People Incorporated (PPLI) withdrew its $48.30 per share proposal to take MGM Resorts International (MGM) private.</li><li>Diller said the ingredients weren’t coming together, while noting People remains “open to and interested in the possibility of a strategic transaction” later.</li><li>MGM fell 11% as the premium came out of the stock.</li></ul>

On September 23, 2026, People Incorporated (PPLI) withdrew its $48.30 per share proposal to take MGM Resorts International (MGM) private.Diller said the ingredients weren’t coming together, while noting People remains “open to and interested in the possibility of a strategic transaction” later.MGM fell 11% as the premium came out of the stock.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

The S&amp;P 500 and Nasdaq 100 are within striking distance of all-time highs and we believe breakouts are on the horizon. Overall, our outlook remains bullish and we recommend adding exposure on pullbacks. In today’s report we highlight attractive Groups and stocks within Discretionary, Materials, and Manufacturing.

The S&amp;P 500 and Nasdaq 100 are within striking distance of all-time highs and we believe breakouts are on the horizon. Overall, our outlook remains bullish and we recommend adding exposure on pullbacks. In today’s report we highlight attractive Groups and stocks within Discretionary, Materials, and Manufacturing.

U.S. Equity Strategy: Breakouts On The Horizon

<ul><li>On January 26, 2026, Eaton Corp (ETN) announced plans to spin off its Mobility Group — which represents roughly 11% of total revenue — in a tax-free transaction expected to be completed by the first quarter of 2027</li><li>The spin-off is part of Eaton’s broader 2030 growth strategy to sharpen its focus on its higher-growth, higher-margin Electrical and Aerospace businesses, which are closely tied to secular megatrends such as electrification, digitalization, AI-driven data center buildouts, and infrastructure and defense spending.</li><li>In recent years, Eaton’s stock has been bid up as investors increasingly view ETN as a beneficiary of the booming AI and data-center buildout, not just a traditional industrial equipment maker.<figure class="editor-figure mceNonEditable"></figure></li></ul>

On January 26, 2026, Eaton Corp (ETN) announced plans to spin off its Mobility Group — which represents roughly 11% of total revenue — in a tax-free transaction expected to be completed by the first quarter of 2027The spin-off is part of Eaton’s broader 2030 growth strategy to sharpen its focus on its higher-growth, higher-margin Electrical and Aerospace businesses, which are closely tied to secular megatrends such as electrification, digitalization, AI-driven data center buildouts, and infrastructure and defense spending.In recent years, Eaton’s stock has been bid up as investors increasingly view ETN as a beneficiary of the booming AI and data-center buildout, not just a traditional industrial equipment maker.

United States

Gentherm Inc. designs, develops, and manufactures heating, cooling, and ventilating devices for diverse global markets.  The Company offers heated seating, climate seating, electronics, and cables. for the automotive markets.

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Gentherm Inc (THRM US)

THRM: A Diversification Deal I’d Rather Watch than Buy

Gentherm (THRM) will complete its reverse Morris trust with Modine’s (MOD) Performance Technologies business (PT) on October 1, 2026.

Richard Howe

Gentherm’s IME Buyout Could Unlock Hidden Healthcare Value!

Gentherm Incorporated has moved further beyond its automotive roots by acquiring privately held Innovative Medical Equipment, or IME, in a...

Baptista Research

Weekly Update (THRM, MOD, PPLI)

On September 23, 2026, People Incorporated (PPLI) withdrew its $48.30 per share proposal to take MGM Resorts International (MGM) private.

Richard Howe

U.S. Equity Strategy: Breakouts On The Horizon

The S&P 500 and Nasdaq 100 are within striking distance of all-time highs and we believe breakouts are on the horizon. Our outlook remains bullish...

Vermilion Research

Weekly Update (WDC, AAF, WAT)

On January 26, 2026, Eaton Corp (ETN) announced plans to spin off its Mobility Group — which represents roughly 11% of total revenue — in a tax...

Richard Howe

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