October Special Situations (Members Only, Limited Space) (Ended)
Topic: Unlocking Value with Spin-Offs
Special situations are corporate actions which could reveal an undervalued security and hence an investment opportunity. Some examples of Special Situations are spinoffs, liquidations, tender offers, restructurings, bankruptcy exits etc. In the Special Situations Research Forum we will discuss an investment situation decided 3 weeks in advance. Every participant in the Forum is expected to research the topic before attending the meeting.
Unlocking Value with Spin-Offs:
Guest Speaker: Joseph W. Cornell, CFA
Specific Investment Situation: R R Donnelley (RRD) Spin-Off of Donnelley Financial Solutions (DFIN) and LSC Communications (LKSD)
RR Donnelley & Sons (NYSE: RRD-$23.81, market capitalization of $1.7 billion), the owner of the Edgar financial-statement wire service, split into three publicly traded companies after acquisitions led to separate strategies for its main business. The largest of the new companies (the parent) will comprise RR Donnelley’s corporate-communications operation. The book and periodical-publishing division (spin-off #1) will be called LSC Communications (NYSE: LKSD-$28.61, market cap $900 million). Edgar Online, Bowne Financial and financial-printing operations formed the second spin-off and is named Donnelley Financial Solutions (NYSE: DFIN-$22.97, market cap $745 million). RR Donnelley completed the tax-free distribution of 80.75% of both LSC Communications and Donnelley Financial on October 1, 2016. RR Donnelley retained 19.75% of both spin-offs that will be disposed within 12 months.
Please see this link to the October 2016 issue of Spin-off Research, which has more details about this situation amongst other Spin-offs.Joseph Cornell is President and controlling principal of Spin-Off Advisors, L.L.C., and the author of "Spin-Off To Pay-Off" -An Analytical Guide To Investing In Corporate Divestitures. He has published "Spin-Off Re-search", an advisory service featuring current information on spin-offs since March of 1997. His insight and commentary on spin-off situations has been featured increasingly in various media such as: Barron’s, Business Week, Bloomberg, The Boston Herald, Buy-Side Magazine, CNBC, CNNfn, Chicago Tribune, Financial Sentinel, Forbes, The LA Times, Modern Trader, Money Magazine, San Francisco Chronicle, Smart Money, Ticker Magazine, U.S. News & World Report, The Washington Post and Worth. Cornell graduated from Loyola University of Chicago in 1986 with a BS in Economics & Finance, and in 1991 received a MBA in Finance from Loyola University. In addition, he earned the Chartered Financial Analyst (CFA) designation in September 1997. He has worked exclusively in the investment industry since graduating from college, and has extensive investment management, trading and analytical experience.
Attendance will be limited to 25 members - first-come, first-served.
Vishal Mishra; Mishra Capital Partners LLC
Nick Redmond; Oculus Asset Management
Members - Free
Attire: Business Casual
Registration: Limited to 25 members
A dial-in option will be available. Phone number and passcode will be distributed the day prior to discussion.
5:30pm - 7:00pm - Discussion
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