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

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Lionsgate reported a strong quarter on May 21, and the stock reacted well.
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Consensus expectations were thin and the year-over-year comparison is somewhat distorted by last year’s inclusion of Starz, but LION nonetheless delivered a clean top- and bottom-line beat.
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Results were driven by solid box-office performance from The Housemaid, with continued carryover from Now You See Me: Now You Don’t.
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Lionsgate reported a strong quarter on May 21, and the stock reacted well.


Consensus expectations were thin and the year-over-year comparison is somewhat distorted by last year’s inclusion of Starz, but LION nonetheless delivered a clean top- and bottom-line beat.


Results were driven by solid box-office performance from The Housemaid, with continued carryover from Now You See Me: Now You Don’t.



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<li>
Small caps have spent four-plus years trapped below their November 2021 peak while large caps ran the show.
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That changed this week: the Russell 2000 broke out to a fresh all-time high, up ~47% over the trailing year.
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<li>The question is whether this is a head-fake or the opening chapter of a real small-cap rally.</li>
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Small caps have spent four-plus years trapped below their November 2021 peak while large caps ran the show.


That changed this week: the Russell 2000 broke out to a fresh all-time high, up ~47% over the trailing year.


The question is whether this is a head-fake or the opening chapter of a real small-cap rally.


Weekly Update (LION, STRZ, MEDXF, UNTC, TRAX)

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>Lionsgate Studios Corporation's fiscal second-quarter 2026 results showcase a mixed performance, marked by both strategic initiatives and notable challenges.</li><li>The company reported revenue of $475 million, an adjusted operating income before depreciation and amortization (OIBDA) of $14 million, and an operating loss of $46 million.</li><li>The diluted loss per share was $0.39, with a free cash flow use of $129 million, indicating significant operational challenges.</li></ul>

Lionsgate Studios Corporation's fiscal second-quarter 2026 results showcase a mixed performance, marked by both strategic initiatives and notable challenges.The company reported revenue of $475 million, an adjusted operating income before depreciation and amortization (OIBDA) of $14 million, and an operating loss of $46 million.The diluted loss per share was $0.39, with a free cash flow use of $129 million, indicating significant operational challenges.

Lionsgate Studios: A Rights-First Studio Strategy That Could Unlock Long-Term Negotiating Power!

<ul><li>People Incorporated (PPLI, formerly IAC) reported a solid Q2. People Inc grew digital revenue 6%, its 11th straight quarter of growth, and expanded digital adjusted EBITDA 18% with margins still climbing.</li><li>The headline $6.68 of EPS is almost entirely the mark-to-market gain on the MGM stake, so I’d ignore it and focus on the operating business, which keeps executing well.</li><li>The leadership handoff is done, with Neil Vogel now CEO, Tim Quinn CFO, and Barry Diller staying on as Chairman. </li></ul>

People Incorporated (PPLI, formerly IAC) reported a solid Q2. People Inc grew digital revenue 6%, its 11th straight quarter of growth, and expanded digital adjusted EBITDA 18% with margins still climbing.The headline $6.68 of EPS is almost entirely the mark-to-market gain on the MGM stake, so I’d ignore it and focus on the operating business, which keeps executing well.The leadership handoff is done, with Neil Vogel now CEO, Tim Quinn CFO, and Barry Diller staying on as Chairman. 

Weekly Update (CMCSA, MFP, HONA, MBGL) - 2026-08-07

<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)

United States

Lionsgate Studios Corp. operates as a mass media and entertainment company. The Company engages in motion picture and television studio operations, designed to bring a varied portfolio of films, television series, and location-based entertainment content. Lionsgate Studios serves customers worldwide.

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Lionsgate Studios (LION US)

Weekly Update (LION, MGBL, OCTV)

Lionsgate reported a strong quarter on May 21, and the stock reacted well. Consensus expectations were thin and the year-over-year comparison is...

Richard Howe

Weekly Update (LION, STRZ, MEDXF, UNTC, TRAX)

Small caps have spent four-plus years trapped below their November 2021 peak while large caps ran the show. That changed this week...

Richard Howe

Lionsgate Studios: A Rights-First Studio Strategy That Could Unlock Long-Term Negotiating Power!

Lionsgate Studios Corporation's fiscal second-quarter 2026 results showcase a mixed performance, marked by both strategic initiatives and notable...

Baptista Research

Weekly Update (CMCSA, MFP, HONA, MBGL) - 2026-08-07

People Incorporated (PPLI, formerly IAC) reported a solid Q2. People Inc grew digital revenue 6%, its 11th straight quarter of growth....

Richard Howe

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

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