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>On a sum-of-the-parts basis, LION and STRZ are worth significantly more than is reflected in LGF.A’s stock price.</li><li>At the close today, investors could buy 1 share of Lionsgate Entertainment (LGF.A) for $8.90. On May 6, that investor will receive 1.12 shares of LION and 1.12 shares of STRZ.</li><li>I estimate LION is worth $11 and STRZ is worth $1.71. As such, it looks like there is ~60% upside</li></ul>

On a sum-of-the-parts basis, LION and STRZ are worth significantly more than is reflected in LGF.A’s stock price.At the close today, investors could buy 1 share of Lionsgate Entertainment (LGF.A) for $8.90. On May 6, that investor will receive 1.12 shares of LION and 1.12 shares of STRZ.I estimate LION is worth $11 and STRZ is worth $1.71. As such, it looks like there is ~60% upside

<ul>
<li>Galapagos NV (GLPG), a Belgian biotechnology company, announced on January 8, 2025, its plan to split into two publicly traded entities by mid-2025.</li>
<li>Vivendi (VIV), the French media conglomerate, has recently undergone a significant restructuring by spinning off several of its key divisions into independent entities.</li>
<li>On December 30, 2024, Lions Gate Entertainment (LGFA/LGFB) filed its latest proxy related to the spin-off of Lionsgate Studios (LION). <a href="https://www.bamsec.com/filing/119312524287096?cik=929351" target="_blank" rel="noopener">You can read it here</a>.</li>
</ul>


Galapagos NV (GLPG), a Belgian biotechnology company, announced on January 8, 2025, its plan to split into two publicly traded entities by mid-2025.
Vivendi (VIV), the French media conglomerate, has recently undergone a significant restructuring by spinning off several of its key divisions into independent entities.
On December 30, 2024, Lions Gate Entertainment (LGFA/LGFB) filed its latest proxy related to the spin-off of Lionsgate Studios (LION). You can read it here.


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

Lions Gate Entertainment  / Equity Bottom-Up

<ul>
<li>Lionsgate secured a solid performance in the third quarter of fiscal 2025, demonstrating resilience in a challenging operating environment.</li>
<li>The Motion Picture segment was particularly strong, highlighted by the successful conversion of three mid-budget films into profitable ventures.</li>
<li>This performance underscores Lionsgate's ability to effectively manage mid-range budget productions, capitalizing on steady box office showings, robust business models, and efficient execution.</li>
</ul>


Lionsgate secured a solid performance in the third quarter of fiscal 2025, demonstrating resilience in a challenging operating environment.
The Motion Picture segment was particularly strong, highlighted by the successful conversion of three mid-budget films into profitable ventures.
This performance underscores Lionsgate's ability to effectively manage mid-range budget productions, capitalizing on steady box office showings, robust business models, and efficient execution.


Lions Gate Entertainment Strikes Gold with New TV Hits & Bold Digital Expansion!

<ul><li>Dupont (DD) spin off its electronics business, Qnity (Q), early this week.</li><li>DQnity will be one of the world’s largest pure-play electronic materials companies, with a portfolio spanning semiconductor fabrication materials and advanced electronics/interconnect solutions.</li><li>Qnity’s Semiconductor Technologies division creates consumable products that are used during semiconductor manufacturing.</li></ul>

Dupont (DD) spin off its electronics business, Qnity (Q), early this week.DQnity will be one of the world’s largest pure-play electronic materials companies, with a portfolio spanning semiconductor fabrication materials and advanced electronics/interconnect solutions.Qnity’s Semiconductor Technologies division creates consumable products that are used during semiconductor manufacturing.

Weekly Update (Q, IAC, ANGI, LION, SNREY)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/holcim-ltd-7f60ceaa-51af-4f85-ac5f-114595eb04f3" target="_blank" data-smartkarma-citation="entities:27916" rel="noopener">Holcim (HOLN SW)</a> spun off its construction materials and solutions business into a standalone company on Friday, June 20th.</li>
<li>The new company is called <a href="https://www.smartkarma.com/entities/amrize-ltd" target="_blank" data-smartkarma-citation="entities:45209" rel="noopener">Amrize (AMRZ US)</a>. </li>
<li>The first day of trading will be Monday, June 23, 2025.</li>
</ul>



Holcim (HOLN SW) spun off its construction materials and solutions business into a standalone company on Friday, June 20th.
The new company is called Amrize (AMRZ US). 
The first day of trading will be Monday, June 23, 2025.


United States

Lions Gate Entertainment Corporation develops and distributes film entertainment contents. The Company produces motion pictures, television programming, animation, and digital media. Lions Gate Entertainment serves customers worldwide.

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Lions Gate Entertainment (LGF/A US)

[Alert] Buy Lionsgate Entertainment

On a sum-of-the-parts basis, LION and STRZ are worth significantly more than is reflected in LGF.A’s stock price. At the close today, investors...

Richard Howe

Weekly Update: January 10, 2025

Galapagos NV (GLPG), a Belgian biotechnology company, announced on January 8, 2025, its plan to split into two publicly traded entities by mid-2025.

Richard Howe

Lions Gate Entertainment Strikes Gold with New TV Hits & Bold Digital Expansion!

Lionsgate secured a solid performance in the third quarter of fiscal 2025, demonstrating resilience in a challenging operating environment.

Baptista Research

Weekly Update (Q, IAC, ANGI, LION, SNREY)

Dupont (DD) spin off its electronics business, Qnity (Q), early this week. DQnity will be one of the world’s largest pure-play electronic materials...

Richard Howe

Weekly Update (AMRZ, LION, FTV)

The AMRZ spin-off aims to capitalize on the higher valuation multiples of US building supply companies compared to their European counterparts.

Richard Howe

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