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>While I do not own MGM and am not formally recommending the stock, it is an important company to analyze given that IAC Inc. is a core holding and its most valuable asset is its approximately $2 billion stake in MGM.</li>
<li>REZI is a situation I will be watching closely as the company approaches the planned 2026 spin-off of its distribution business.</li>
<li>On December 29, 2025, Applied Digital (APLD) and EKSO Bionics (EKSO) announced a non-binding term sheet to separate Applied Digital’s cloud computing business</li>
</ul>


While I do not own MGM and am not formally recommending the stock, it is an important company to analyze given that IAC Inc. is a core holding and its most valuable asset is its approximately $2 billion stake in MGM.
REZI is a situation I will be watching closely as the company approaches the planned 2026 spin-off of its distribution business.
On December 29, 2025, Applied Digital (APLD) and EKSO Bionics (EKSO) announced a non-binding term sheet to separate Applied Digital’s cloud computing business


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

MGM Resorts International / Equity Bottom-Up

<ul><li>MGM Resorts International reported its third-quarter 2025 financial results amid a mixed backdrop of strategic realignments and market challenges.</li><li>The company showcased its capacity for disciplined capital allocation and strategic growth across various markets, although it faced some difficulties in its Las Vegas operations due to external factors.</li><li>One significant development was MGM's decision to withdraw its application for a commercial license in Yonkers, New York.</li></ul>

MGM Resorts International reported its third-quarter 2025 financial results amid a mixed backdrop of strategic realignments and market challenges.The company showcased its capacity for disciplined capital allocation and strategic growth across various markets, although it faced some difficulties in its Las Vegas operations due to external factors.One significant development was MGM's decision to withdraw its application for a commercial license in Yonkers, New York.

MGM Resorts International: How Japan’s Mega-Resort Could Be Its Biggest Game-Changer Yet!

<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.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/resonac-holdings-corp" target="_blank" data-smartkarma-citation="entities:1496:1" rel="noopener">Resonac Holdings (4004 JP)</a> is worth more than ¥200/share over the medium-term. But expect this <a href="https://www.smartkarma.com/entities/crasus-chemical" target="_blank" data-smartkarma-citation="entities:58630:1" rel="noopener">Crasus Chemical (646A JP)</a> spinoff to create trading and accumulation opportunities in the near future.</li>
<li>
<a href="https://www.smartkarma.com/entities/tokio-marine-holdings-inc" target="_blank" data-smartkarma-citation="entities:7591:1" rel="noopener">Tokio Marine (8766 JP)</a> reportedly identified <a href="https://www.smartkarma.com/entities/suncorp-group-ltd" target="_blank" data-smartkarma-citation="entities:4218:1" rel="noopener">Suncorp (SUN AU)</a>. It's a clean play after selling Suncorp Bank to ANZ. <a href="https://www.smartkarma.com/entities/insurance-australia-group-ltd" target="_blank" data-smartkarma-citation="entities:712:1" rel="noopener">IAG (IAG AU)</a> is now cleaner after settling the Greensill litigation.</li>
<li>
<a href="https://www.smartkarma.com/entities/legend-holdings-corporation-class-h" target="_blank" data-smartkarma-citation="entities:517:1" rel="noopener">Legend Holdings (3396 HK)</a> remains deeply valued. It is now seeking to offload its 90% stake in Banque Internationale à Luxembourg for ~HK$23bn. </li>
</ul>



Resonac Holdings (4004 JP) is worth more than ¥200/share over the medium-term. But expect this Crasus Chemical (646A JP) spinoff to create trading and accumulation opportunities in the near future.

Tokio Marine (8766 JP) reportedly identified Suncorp (SUN AU). It's a clean play after selling Suncorp Bank to ANZ. IAG (IAG AU) is now cleaner after settling the Greensill litigation.

Legend Holdings (3396 HK) remains deeply valued. It is now seeking to offload its 90% stake in Banque Internationale à Luxembourg for ~HK$23bn. 


Last Week In Event SPACE: Resonac, Tokio Marine/Suncorp/IAG, Legend, Chery Automobile

Quality-first, Business-perspective, Long-term, Urbem (HK) Limited

Urbem Capital

Quality-first, Business-perspective, Long-term

Quality-first, Business-perspective Strategy

Urbem (HK) Limited

<ul>
<li>Our 2022 earnings thesis largely worked: FY12/2021-FY12/2025 profit compounded about 15% annually while adjusted EBITDA margins remained above 66%.</li>
<li>What we underestimated was regulatory and geographic complexity: by Q2 FY12/2026, only 49% of revenue was classified as regulated by player IP.</li>
<li>The next phase depends on renewed organic growth, better regulated-market monetization, and whether large buybacks can convert resilient cash generation into stronger per-share compounding.</li>
</ul>


Our 2022 earnings thesis largely worked: FY12/2021-FY12/2025 profit compounded about 15% annually while adjusted EBITDA margins remained above 66%.
What we underestimated was regulatory and geographic complexity: by Q2 FY12/2026, only 49% of revenue was classified as regulated by player IP.
The next phase depends on renewed organic growth, better regulated-market monetization, and whether large buybacks can convert resilient cash generation into stronger per-share compounding.


Evolution Four Years Later: The Earnings Thesis Worked. The Multiple Did Not.

United States

MGM Resorts International operates gaming, hospitality and entertainment resorts.  The Company owns properties in Nevada, Mississippi and Michigan in the United States; and owns interests in properties in Nevada and Illinois in the United States, and Macau. MGM Resorts also offers hospitality management services for casino and non-casino properties around the world.

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MGM Resorts International (MGM US)

Weekly Update (MGM, REZI, APLD)

While I do not own MGM and am not formally recommending the stock, it is an important company to analyze given that IAC Inc. is a core holding...

Richard Howe

MGM Resorts International: How Japan’s Mega-Resort Could Be Its Biggest Game-Changer Yet!

MGM Resorts International reported its third-quarter 2025 financial results amid a mixed backdrop of strategic realignments and market...

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

Last Week In Event SPACE: Resonac, Tokio Marine/Suncorp/IAG, Legend, Chery Automobile

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Evolution Four Years Later: The Earnings Thesis Worked. The Multiple Did Not.

Four years after our 2022 Evolution thesis, earnings broadly delivered as expected, but regulation, player geography and valuation exposed what the...

Urbem Capital

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