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>Lennar’s first-quarter 2026 results reflected a difficult U.S. housing backdrop shaped by affordability pressure, mortgage rates above 6%, and broader geopolitical uncertainty weighing on consumer confidence.</li><li>Even so, the company continued adjusting its operating model while preserving balance sheet flexibility and long-term strategic discipline.</li><li>Operationally, Lennar kept production and sales relatively balanced, starting about 17,400 homes and selling roughly 18,500.</li></ul>

Lennar’s first-quarter 2026 results reflected a difficult U.S. housing backdrop shaped by affordability pressure, mortgage rates above 6%, and broader geopolitical uncertainty weighing on consumer confidence.Even so, the company continued adjusting its operating model while preserving balance sheet flexibility and long-term strategic discipline.Operationally, Lennar kept production and sales relatively balanced, starting about 17,400 homes and selling roughly 18,500.

Lennar: A $10.5 Billion Inventory Base Reflects The Land Light Shift!

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Richard Howe

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Stock Spin-offs

Event-Driven

<ul>
<li>Small caps generally trade between a 50% discount to the S&amp;P 500 and a 50% premium. The current discount is 22%.</li>
<li>Relative periods of outperformance tend to last for waves of at least 13 years.</li>
<li>The current dominance of large caps over small caps has lasted ~13 years. This suggests the cycle could be due to change.</li>
</ul>


Small caps generally trade between a 50% discount to the S&amp;P 500 and a 50% premium. The current discount is 22%.
Relative periods of outperformance tend to last for waves of at least 13 years.
The current dominance of large caps over small caps has lasted ~13 years. This suggests the cycle could be due to change.


<ul>
<li>Honeywell International (HON) announced its plan to spin off its Advanced Materials business on October 8, 2024.</li>
<li>Subsequently, on February 6, 2025, the company revealed its intention to separate into three independent entities by also spinning off its Aerospace and Automation divisions.</li>
<li>Automation (49% of revenue): This segment will concentrate on developing advanced automation technologies.</li>
</ul>


Honeywell International (HON) announced its plan to spin off its Advanced Materials business on October 8, 2024.
Subsequently, on February 6, 2025, the company revealed its intention to separate into three independent entities by also spinning off its Aerospace and Automation divisions.
Automation (49% of revenue): This segment will concentrate on developing advanced automation technologies.


<ul>
<li>
This week, IAC Inc (IAC) provided <a href="https://www.prnewswire.com/news-releases/iac-announces-plan-to-spin-off-angi-reorganizes-leadership-302349721.html" target="_blank" rel="noopener">an update</a> on its Angi Inc (ANGI) spin-off plans.
</li>
<li>
Previously, IAC had suggested that it would spin off ANGI but hadn’t confirmed it.
</li>
<li>
IAC will spin-off its entire stake in Angi Inc in the first half of 2025, but no sooner than March 31. 
</li>
</ul>



This week, IAC Inc (IAC) provided an update on its Angi Inc (ANGI) spin-off plans.


Previously, IAC had suggested that it would spin off ANGI but hadn’t confirmed it.


IAC will spin-off its entire stake in Angi Inc in the first half of 2025, but no sooner than March 31. 



<ul>
<li>Lennar (LEN) <a href="https://stockspinoffinvesting.us12.list-manage.com/track/click?u=7d7fc84ad2ad141d71def9000&amp;id=01ab1c5662&amp;e=b00018bf49" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://stockspinoffinvesting.us12.list-manage.com/track/click?u%3D7d7fc84ad2ad141d71def9000%26id%3D01ab1c5662%26e%3Db00018bf49&amp;source=gmail&amp;ust=1760684031188000&amp;usg=AOvVaw3ReKNmQxnWlWQIv19WMngl" rel="noopener">announced</a> an exchange offer on October 10, 2025 whereby investors can exchange their LEN shares for shares of Millrose Properties (MRP), Lennar’s land bank spin-off.</li>
<li>To incentivize the exchange, LEN investors will receive $106.43 of value in MRP shares for every $100 of value in LEN shares.</li>
<li>I expect the exchange offer to be oversubscribed, However, there is an odd lot provision such that any L:EN shareholders with 99 shares or less (odd lot provision) will not be prorated.</li>
</ul>


Lennar (LEN) announced an exchange offer on October 10, 2025 whereby investors can exchange their LEN shares for shares of Millrose Properties (MRP), Lennar’s land bank spin-off.
To incentivize the exchange, LEN investors will receive $106.43 of value in MRP shares for every $100 of value in LEN shares.
I expect the exchange offer to be oversubscribed, However, there is an odd lot provision such that any L:EN shareholders with 99 shares or less (odd lot provision) will not be prorated.


Buy 99 Shares of Lennar (LEN) - Special Situation Odd Lot

United States

Lennar Corporation constructs and sells single-family attached and detached homes, and to a lesser extent multi-level buildings as well as buys and sells residential land. The Company also provides mortgage financing, title insurance, closing services and other financial services.

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Lennar Corp A (LEN US)

Lennar: A $10.5 Billion Inventory Base Reflects The Land Light Shift!

Lennar’s first-quarter 2026 results reflected a difficult U.S. housing backdrop shaped by affordability pressure, mortgage rates above 6%, and...

Baptista Research

Weekly Update (WDC, SNDK, MRP, IAC)

Small caps generally trade between a 50% discount to the S&P 500 and a 50% premium. The current discount is 22%. Relative periods of outperformance...

Richard Howe

Weekly Update (MRP, WDC, HON, LGFA)

Honeywell International (HON) announced its plan to spin off its Advanced Materials business on October 8, 2024. Subsequently, on February 6, 2025,...

Richard Howe

Weekly Update (SNRE, HHH, ANGI, MRP)

This week, IAC Inc (IAC) provided an update on its Angi Inc (ANGI) spin-off plans. Previously, IAC had suggested that it would spin off ANGI but...

Richard Howe

Buy 99 Shares of Lennar (LEN) - Special Situation Odd Lot

Lennar (LEN) announced an exchange offer on October 10, 2025 whereby investors can exchange their LEN shares for shares of Millrose Properties...

Richard Howe

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