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

IDT Corporation offers consumer services focused primarily on the telecommunications industry. The Company, through its subsidiaries, provides retail and wholesale telecommunications services and products, including pre-paid and rechargeable calling cards and wholesale carrier services.

<ul><li>The S&amp;P 500 is sitting near 7,800, a record high.</li><li>At the same time, the 25-day average of new lows on the NYSE has spiked to levels we last saw in the April 2025 selloff.</li><li>The index is at an all-time high while a lot of individual stocks are trading like it’s a bear market.</li></ul>

The S&amp;P 500 is sitting near 7,800, a record high.At the same time, the 25-day average of new lows on the NYSE has spiked to levels we last saw in the April 2025 selloff.The index is at an all-time high while a lot of individual stocks are trading like it’s a bear market.

<ul><li>I’m closing out my IDT recommendation.</li><li>Not because I’ve soured on the company — I still like the business and the management team — but because the stock now trades right at my estimate of fair value, and I’d rather redeploy the proceeds into higher-conviction ideas.</li><li>Since I first recommended it, IDT has returned roughly 320%, making it my oldest and one of my most profitable recommendations.</li></ul>

I’m closing out my IDT recommendation.Not because I’ve soured on the company — I still like the business and the management team — but because the stock now trades right at my estimate of fair value, and I’d rather redeploy the proceeds into higher-conviction ideas.Since I first recommended it, IDT has returned roughly 320%, making it my oldest and one of my most profitable recommendations.

Medtronic, PLC develops therapeutic and diagnostic medical products. The Company's principal products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, heart failure management, heart valve replacement, malignant and non-malignant pain, and movement disorders. Medtronic's products are sold worldwide.

<ul><li>Medtronic (MDT) announced an exchange offer on September 14, 2026 whereby investors can exchange their MDT shares for shares of MiniMed (MMED), Medtronic’s diabetes spin-off.</li><li>This is now an official recommendation.</li><li>I have already bought MDT shares and plan to buy more today.</li></ul>

Medtronic (MDT) announced an exchange offer on September 14, 2026 whereby investors can exchange their MDT shares for shares of MiniMed (MMED), Medtronic’s diabetes spin-off.This is now an official recommendation.I have already bought MDT shares and plan to buy more today.

Buy 99 Shares of MDT. MMED/MDT Exchange Offer – Special Situation

<ul><li>IDT reported record Q4 and full-year fiscal 2026 results this week, and the numbers were strong across the board.</li><li>FY2026 revenue rose 5% to $1.30BN and adjusted EBITDA grew 17% to $154.6MM, beating the raised $150-152MM guide, while non-GAAP EPS climbed 20% to $3.82.</li><li>The three growth businesses did the heavy lifting again, with full-year adjusted EBITDA up 30% at NRS, 41% at Fintech (BOSS Money), and 33% at net2phone.</li></ul>

IDT reported record Q4 and full-year fiscal 2026 results this week, and the numbers were strong across the board.FY2026 revenue rose 5% to $1.30BN and adjusted EBITDA grew 17% to $154.6MM, beating the raised $150-152MM guide, while non-GAAP EPS climbed 20% to $3.82.The three growth businesses did the heavy lifting again, with full-year adjusted EBITDA up 30% at NRS, 41% at Fintech (BOSS Money), and 33% at net2phone.

Gentherm Inc. designs, develops, and manufactures heating, cooling, and ventilating devices for diverse global markets.  The Company offers heated seating, climate seating, electronics, and cables. for the automotive markets.

<ul><li>Gentherm (THRM) will complete its reverse Morris trust with Modine’s (MOD) Performance Technologies business (PT) on October 1, 2026.</li><li>Modine distributes the SpinCo shares that day, and they merge into Gentherm immediately, so Modine holders receive about 23.75MM Gentherm shares, roughly 43% of the combined company (my estimate).</li><li>There is no when-issued market. Modine trades with due bills through October 1 and begins trading ex-distribution on October 2, 2026. </li></ul>

Gentherm (THRM) will complete its reverse Morris trust with Modine’s (MOD) Performance Technologies business (PT) on October 1, 2026.Modine distributes the SpinCo shares that day, and they merge into Gentherm immediately, so Modine holders receive about 23.75MM Gentherm shares, roughly 43% of the combined company (my estimate).There is no when-issued market. Modine trades with due bills through October 1 and begins trading ex-distribution on October 2, 2026. 

THRM: A Diversification Deal I’d Rather Watch than Buy

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.