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>MODG currently trades at a $1.9BN market cap and a $5.4BN enterprise value, but that capital structure is about to materially change.</li><li>With the announced sale of 60% of Topgolf to private equity, MODG will no longer consolidate Topgolf’s heavy lease liabilities—including operating leases, financing leases, and deemed landlord financing obligations—meaning its reported debt and enterprise value will drop significantly.</li><li>Topgolf accounts for the vast majority of these liabilities, while the core Callaway and Active Lifestyle businesses primarily lease retail stores and distribution centers on a much smaller scale.</li></ul>

MODG currently trades at a $1.9BN market cap and a $5.4BN enterprise value, but that capital structure is about to materially change.With the announced sale of 60% of Topgolf to private equity, MODG will no longer consolidate Topgolf’s heavy lease liabilities—including operating leases, financing leases, and deemed landlord financing obligations—meaning its reported debt and enterprise value will drop significantly.Topgolf accounts for the vast majority of these liabilities, while the core Callaway and Active Lifestyle businesses primarily lease retail stores and distribution centers on a much smaller scale.

MODG: TopGolf Sale Will Meaningfully Improve Balance Sheet

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

Equity Bottom-Up

Topgolf Callaway Brands  / Equity Bottom-Up

Key points (machine generated)<ul><li>TopGolf Callaway plans to spin off or sell its TopGolf Entertainment business by 2026 while keeping its core Golf and Apparel operations.</li><li>Callaway's remaining assets are valued at approximately 5x the estimated EPS of $1.57 for 2027, with analysts predicting a potential 50% upside due to various market factors.</li><li>A target stock price of $19 is suggested for Callaway, indicating a 125% upside, with recommendations to take a long position in MODG and short LUCK.</li></ul>This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)TopGolf Callaway plans to spin off or sell its TopGolf Entertainment business by 2026 while keeping its core Golf and Apparel operations.Callaway's remaining assets are valued at approximately 5x the estimated EPS of $1.57 for 2027, with analysts predicting a potential 50% upside due to various market factors.A target stock price of $19 is suggested for Callaway, indicating a 125% upside, with recommendations to take a long position in MODG and short LUCK.This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Topgolf Callaway Brands Corp (MODG) - Monday, Aug 4, 2025

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/uber-technologies-inc" target="_blank" data-smartkarma-citation="entities:430:1" rel="noopener">Uber Technologies (UBER US)</a>, <a href="https://www.smartkarma.com/entities/jabil-circuit-inc" target="_blank" data-smartkarma-citation="entities:16674:1" rel="noopener">Jabil Circuit (JBL US)</a> and <a href="https://www.smartkarma.com/entities/builders-firstsource-inc" target="_blank" data-smartkarma-citation="entities:4720:1" rel="noopener">Builders Firstsource (BLDR US)</a> will be added to the <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a> at the close on 15 December.</li>
<li>There are a bunch of inclusions. deletions and migrations across the <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a>, the S&amp;P Midcap 400 Index, and the S&amp;P SmallCap 600 Index.</li>
<li>We estimate passive trackers will need to buy around US$18bn of <a href="https://www.smartkarma.com/entities/uber-technologies-inc" target="_blank" data-smartkarma-citation="entities:430:1" rel="noopener">Uber Technologies (UBER US)</a>. There has been positioning in the stock for just over a month now. </li>
</ul>



Uber Technologies (UBER US), Jabil Circuit (JBL US) and Builders Firstsource (BLDR US) will be added to the S&amp;P 500 INDEX (SPX INDEX) at the close on 15 December.
There are a bunch of inclusions. deletions and migrations across the S&amp;P 500 INDEX (SPX INDEX), the S&amp;P Midcap 400 Index, and the S&amp;P SmallCap 600 Index.
We estimate passive trackers will need to buy around US$18bn of Uber Technologies (UBER US). There has been positioning in the stock for just over a month now. 


<ul><li>Comcast (CMCSA) announced in late 2024 that it would spin off a bundle of its traditional U.S. cable networks and related digital properties into a new independent company, now named Versant Media Group (VSNT).</li><li>Versant will host an analyst day on Thursday, December 4th and the spin-off is expected to take place in early 2026.</li><li>The move is driven by the secular decline of linear TV and the “transition of our video businesses”, as Comcast’s President Michael Cavanagh described.</li></ul>

Comcast (CMCSA) announced in late 2024 that it would spin off a bundle of its traditional U.S. cable networks and related digital properties into a new independent company, now named Versant Media Group (VSNT).Versant will host an analyst day on Thursday, December 4th and the spin-off is expected to take place in early 2026.The move is driven by the secular decline of linear TV and the “transition of our video businesses”, as Comcast’s President Michael Cavanagh described.

Weekly Update (MEDXF, MAGN, LEN/MRP, MODG)

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>TaylorMade is up for sale. TaylorMade is one of the most valuable, golf equipment brands globally.</li>
<li>We labeled this article as Bearish due to concerns about F&amp;F getting into this M&amp;A battle for TaylorMade in the first place which could result in overpaying for this deal.</li>
<li>We would rather have F&amp;F take the win and provide higher returns to its shareholders.</li>
</ul>


TaylorMade is up for sale. TaylorMade is one of the most valuable, golf equipment brands globally.
We labeled this article as Bearish due to concerns about F&amp;F getting into this M&amp;A battle for TaylorMade in the first place which could result in overpaying for this deal.
We would rather have F&amp;F take the win and provide higher returns to its shareholders.


United States

Topgolf Callaway Brands Corp. provides golf equipment. The Company offers balls, gear, customs, fittings, and apparels. Topgolf Callaway Brands serves customers worldwide.

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Topgolf Callaway Brands (MODG US)

MODG: TopGolf Sale Will Meaningfully Improve Balance Sheet

MODG currently trades at a $1.9BN market cap and a $5.4BN enterprise value, but that capital structure is about to materially change.

Richard Howe

Topgolf Callaway Brands Corp (MODG) - Monday, Aug 4, 2025

TopGolf Callaway plans to spin off or sell its TopGolf business by 2026, while analysts predict a 125% stock price upside for its core operations...

Value Investors Club (VIC)

S&P500 Index Rebalance: Calling an UBER

Passive S&P500 index trackers will need to buy around US$18bn of Uber in two weeks. Positioning in the stock began a month ago and just ahead of Q3...

Brian Freitas

Weekly Update (MEDXF, MAGN, LEN/MRP, MODG)

Comcast (CMCSA) announced in late 2024 that it would spin off a bundle of its traditional U.S. cable networks and related digital properties into...

Richard Howe

M&A Battle for TaylorMade

We labeled this article as Bearish due to concerns about F&F getting into this M&A battle for TaylorMade in the first place which could result in...

Douglas Kim

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