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’m closing out my LEN/MRP odd lot trade recommendation and will be selling my MRP shares.</li><li>The total return if you took advantage of the odd lot provision was +1.9% / + $235 less than the expected return of +6.4% / $772.</li><li>The driver of the underperformance? MRP sold off in mi- November given market weakness and hasn’t fully recovered.</li></ul>

I’m closing out my LEN/MRP odd lot trade recommendation and will be selling my MRP shares.The total return if you took advantage of the odd lot provision was +1.9% / + $235 less than the expected return of +6.4% / $772.The driver of the underperformance? MRP sold off in mi- November given market weakness and hasn’t fully recovered.

Enviri Corporation is an environmental solutions company. The Company offers solutions for complex environmental issues and serves large industries, including steel, railways, and energy. Enviri provides processing, treatment, disposal, and recycling solutions for a wide range of complex, highly recurring waste streams such as hazardous and non-hazardous waste.

<ul><li>One market sector that hasn’t been lifted by the AI narrative is the oil and gas industry.</li><li>Enviri Corporation (NVRI) announced on November 21, 2025, that it had reached a definitive agreement to sell its Clean Earth specialty-waste business to Veolia for $3 billion while simultaneously preparing to spin off its remaining Harsco Environmental and Harsco Rail divisions into a new standalone public company called New Enviri.</li><li>NVRI reacted positively to the news.<figure class="editor-figure mceNonEditable"></figure></li></ul>

One market sector that hasn’t been lifted by the AI narrative is the oil and gas industry.Enviri Corporation (NVRI) announced on November 21, 2025, that it had reached a definitive agreement to sell its Clean Earth specialty-waste business to Veolia for $3 billion while simultaneously preparing to spin off its remaining Harsco Environmental and Harsco Rail divisions into a new standalone public company called New Enviri.NVRI reacted positively to the news.

ThyssenKrupp AG manufactures industrial components.  The Company produces flat rolled and cast steel, automobile parts, elevators and escalators, machine tools, bearings, nonferrous metals and plastics, develops and manages real estate, and designs and constructs factories.

<ul><li>On October 30, 2025, Thyssenkrupp AG (TKA) spun off 49% of its stake in its naval/-marine defense-systems business, TKMS AG &amp; Co. (TKMS).</li><li>TKMS stands out as Germany’s only full-systems provider for non-nuclear submarines, surface vessels and maritime electronics.</li><li>The spin-off is part of a broader move by Thyssenkrupp to unlock shareholder value by simplifying its conglomerate structure.</li></ul>

On October 30, 2025, Thyssenkrupp AG (TKA) spun off 49% of its stake in its naval/-marine defense-systems business, TKMS AG &amp; Co. (TKMS).TKMS stands out as Germany’s only full-systems provider for non-nuclear submarines, surface vessels and maritime electronics.The spin-off is part of a broader move by Thyssenkrupp to unlock shareholder value by simplifying its conglomerate structure.

Thyssenkrupp Marine Systems (TKMS) Spin-off Deep Dive

Equity Bottom-Up

Comcast Corporation provides media and television broadcasting services. The Company offers video streaming, television programming, high-speed internet, cable television, and communication services. Comcast serves customers worldwide.

<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)

Becton Dickinson and Co / Equity Bottom-Up

Becton, Dickinson and Company is a global medical technology company engaged principally in the development, manufacture and sale of medical devices, instrument systems and reagents used by healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public.

<ul><li>In Q1 2026, BDX will merge its Biosciences &amp; Diagnostic Solutions segment to Waters (WAT). BDX will receive $4BN in cash and 0.14 WAT shares per BDX share, leaving its shareholders with roughly 39 percent of the combined company.</li><li>The remaining business, referred to as New BD, will be a focused med-tech company with ~$18BN in revenue across Medical Essentials, Connected Care, BioPharma Systems, and Interventional. More than 90 percent of revenue will be recurring, and management expects high single-digit earnings growth.</li><li>New BD’s valuation looks appealing. Based on where BDX and WAT currently trade, New BD implies a P/E of roughly 11x earnings. I believe the business deserves at least a 13x multiple, which would equate to about 12% upside. That said, I’m not ready to buy yet.</li></ul>

In Q1 2026, BDX will merge its Biosciences &amp; Diagnostic Solutions segment to Waters (WAT). BDX will receive $4BN in cash and 0.14 WAT shares per BDX share, leaving its shareholders with roughly 39 percent of the combined company.The remaining business, referred to as New BD, will be a focused med-tech company with ~$18BN in revenue across Medical Essentials, Connected Care, BioPharma Systems, and Interventional. More than 90 percent of revenue will be recurring, and management expects high single-digit earnings growth.New BD’s valuation looks appealing. Based on where BDX and WAT currently trade, New BD implies a P/E of roughly 11x earnings. I believe the business deserves at least a 13x multiple, which would equate to about 12% upside. That said, I’m not ready to buy yet.

New BD Looks Cheap But I’m Not Ready to Buy (Yet)

After graduating from Trinity College in Connecticut, I joined Eaton Vance full-time as an equity research associate. While at Eaton Vance, I completed the Chartered Financial Analyst program and earned the CFA designation. In 2013, I left Eaton Vance to join Citi Private Bank to work in the private equity research group.