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>I want to use my introduction to provide some comments on Howard Hughes (HHH).</li><li>Bill Ackman’s Pershing Square Capital Management has disclosed a new offer related to Howard Hughes.</li><li>The proposal is that Pershing Square Capital Management purchases 10 million newly issued shares at $90 each, totaling $900 million, which would increase Pershing Square’s stake from 37.6% to 48%.</li></ul>

I want to use my introduction to provide some comments on Howard Hughes (HHH).Bill Ackman’s Pershing Square Capital Management has disclosed a new offer related to Howard Hughes.The proposal is that Pershing Square Capital Management purchases 10 million newly issued shares at $90 each, totaling $900 million, which would increase Pershing Square’s stake from 37.6% to 48%.

Weekly Update (SNDK, LBTYA, MRP, HHH, GTX)

<ul><li>On February 24, 2025, Western Digital (WDC) will spin-off 80.1% of its stake in Sandisk (SNDK).</li><li>Sandisk is trading in the when issued market at $48.26. At that share price, SNDK is trading at an EV/ annualized revenue of 1.0x and a price to annualized earnings of 9.9x.</li><li>This price looks relatively attractive given Sandisk’s NAND flash memory partner, Xioxia, is trading at 1.3x TTM revenue.</li></ul>

On February 24, 2025, Western Digital (WDC) will spin-off 80.1% of its stake in Sandisk (SNDK).Sandisk is trading in the when issued market at $48.26. At that share price, SNDK is trading at an EV/ annualized revenue of 1.0x and a price to annualized earnings of 9.9x.This price looks relatively attractive given Sandisk’s NAND flash memory partner, Xioxia, is trading at 1.3x TTM revenue.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Kioxia Holdings  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kioxia-holdings-corp" target="_blank" data-smartkarma-citation="entities:29243:1" rel="noopener">Kioxia Holdings (285A JP)</a> is a leading player in the NAND flash memory market. It will list on 18 December and seek to raise up to US$740 million.</li>
<li>In <a href="https://www.smartkarma.com/insights/kioxia-285a-jp-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:168216" rel="noopener">Kioxia (285A JP) IPO: The Bull Case</a>, we highlighted the key elements of the bull case. In this note, we outline the bear case.</li>
<li>The bear case rests on unrealistic long-term financial model assumptions, market share losses, high customer concentration risk, volatile gross margin due to JV and weak FCF profile.</li>
</ul>



Kioxia Holdings (285A JP) is a leading player in the NAND flash memory market. It will list on 18 December and seek to raise up to US$740 million.
In Kioxia (285A JP) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The bear case rests on unrealistic long-term financial model assumptions, market share losses, high customer concentration risk, volatile gross margin due to JV and weak FCF profile.


Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Would <a href="https://www.smartkarma.com/entities/16955" target="_blank" data-smartkarma-citation="entities:16955:1">SK Hynix Inc (000660 KS)</a> give up voting stakes? According to the most recent article from Korea, SK Hynix is reaffirming that it will not give up voting stakes (this is the latest news article about Hynix not giving up Toshiba voting stakes <a href="http://www.sisacast.kr/news/articleView.html?idxno=15941" target="_blank">http://www.sisacast.kr/news/articleView.html?idxno=15941</a>). In this insight, I discussed why SK Hynix needs to be so obsessed with Toshiba memory unit and it will not easily give up voting stakes. I didn't write this piece to make investment recommendations. I strictly focused on Hynix's situation with 3D V-NAND.

Would SK Hynix Inc (000660 KS) give up voting stakes? According to the most recent article from Korea, SK Hynix is reaffirming that it will not give up voting stakes (this is the latest news article about Hynix not giving up Toshiba voting stakes http://www.sisacast.kr/news/articleView.html?idxno=15941). In this insight, I discussed why SK Hynix needs to be so obsessed with Toshiba memory unit and it will not easily give up voting stakes. I didn't write this piece to make investment recommendations. I strictly focused on Hynix's situation with 3D V-NAND.

SK Hynix Says It Will Not Give up Toshiba Voting Stakes - Why Hynix So Obsessed with Toshiba?

SK Hynix officially confirmed, through a regulatory filing, that it submitted a "non-binding" offer for the stake in Toshiba's new memory company on Feb 3. Multiple news sources in Korea reported that Hynix bid is estimated at around ₩3tril (US$2.62bil), which is substantially higher than ₩2tril that was initially reported. Still, several things are not quite clear in relation to SK Group's bid for Toshiba's memory business. What are these issues? Let's take a look:

SK Hynix officially confirmed, through a regulatory filing, that it submitted a "non-binding" offer for the stake in Toshiba's new memory company on Feb 3. Multiple news sources in Korea reported that Hynix bid is estimated at around ₩3tril (US$2.62bil), which is substantially higher than ₩2tril that was initially reported. Still, several things are not quite clear in relation to SK Group's bid for Toshiba's memory business. What are these issues? Let's take a look:

4 Key Issues About SK Hynix Investment in Toshiba Memory Company

United States

SanDisk Corporation designs, develops, and manufactures data storage solutions in a variety of form factors using our flash memory, proprietary controller and firmware technologies. The Company's solutions include removable cards, embedded products, universal serial bus, or USB, drives, digital media players, wafers and components.

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Sandisk Corp (SNDK US)

Weekly Update (SNDK, LBTYA, MRP, HHH, GTX)

I want to use my introduction to provide some comments on Howard Hughes (HHH). Bill Ackman’s Pershing Square Capital Management has disclosed a new...

Richard Howe

Sandisk Spin-off Overview

On February 24, 2025, Western Digital (WDC) will spin-off 80.1% of its stake in Sandisk (SNDK). Sandisk is trading in the when issued market at...

Richard Howe

Kioxia (285A JP) IPO: The Bear Case

The bear case rests on unrealistic long-term financial model assumptions, market share losses, high customer concentration risk, volatile gross...

Arun George

SK Hynix Says It Will Not Give up Toshiba Voting Stakes - Why Hynix So Obsessed with Toshiba?

Would SK Hynix Inc (000660 KS) give up voting stakes? According to the most recent article from Korea, SK Hynix is reaffirming that it will not...

Sanghyun Park

4 Key Issues About SK Hynix Investment in Toshiba Memory Company

SK Hynix officially confirmed, through a regulatory filing, that it submitted a "non-binding" offer for the stake in Toshiba's new memory company...

Sanghyun Park

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