BBX Capital Corporation (BBX)

Situation

BBX Capital is a conglomerate which will complete a partial IPO later in November. It could be a potential fifty cent dollar.

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Molson Coors Brewing Company (TAP)

Situation

Molson Coors is trading at 52 week low price. It appears to be trading at one of the lowest EV/EBITDA multiple amongst its peer group of other breweres.

 

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LSC Communications, Inc. (LKSD)

Situation

LSC Communications was spun off from RR Donnelley last year. The other spin at the same time, Donnelley Financial, was supposed to be the good business and LSC Communications was not so good. Its stock price has declined in half post spin-off.

 

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AMC Entertainment Holdings (AMC)

Situation

AMC declined by more than 50% this year. Last year was a record year for AMC but the box office has been weak this year. Wanda, a Chinese company, owns 58% of AMC, but 81% of voting rights. AMC has to sell down its stake in National Cinemedia (NCMI) which has also declined which could be from forced selling.

 

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STORE Capital Corporation (STOR)

Situation

STORE Capital Corporation, an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, announced that Berkshire Hathaway has invested $377 million in the company, representing 9.8% of total shares outstanding. In the transaction, STORE Capital issued 18.6 million shares of company stock in a private placement to a wholly owned subsidiary of Berkshire Hathaway at a price of $20.25 per share. Berkshire invested perhaps because they could not create the business themselves and they took 9.9% stake, the max allowed.

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Vistra Energy Corp. (VST)

Vistra Energy, a power producer and a retail marketing organisation to sell power, was spun from the bankruptcy of Energy Future Holdings earlier called Texas Utilities.

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Resource Capital Corp. (RSO)

Situation

Price to book value of ~0.6x following the dividend cut in Q4 2016.

  • Portfolio recycling,
  • Messy REIT planning to clean itself
  • You can monitor the clean up process
  • Bad stuff is MTM every quarter

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Liberty Expedia (LEXEA)

Business

Liberty Expedia owns 16% of Expedia, whose direct competitor is Priceline, and Bodybuilding.com. The stock has grown at ~35% in the last five years.  Here is the presentation after Librty Ventures split-off Liberty Expedia.  nov-2016_libertyexpedia

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Colony NorthStar, Inc. (CLNS)

Situation

Merger of Northstar Asset Management (NSAM), Northstar Realty Finance (NRF) and Colony Capital (CLNY) to create one company called Colony Northstar.

NSAM was spun off from NRF couple of years back. Around the same time Colony Capital internalized its asset manager. Later 2015 and early 2016, the market sold off asset managers and externally managed REITS including NSAM and NRF. NSAM, NRF and Colony capital merged to form one REIT called Colony Northstar (CLNS).

 

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Hilton Worldwide Holdings (HLT)

Situation

Hilton Worldwide (HLT) is spinning off two publicly traded companies by year end.  The remaining parent (HLT) will be a capital light franchise revenue model with over 4800 hotels worldwide and a strong pipeline.  The two spins will be a REIT, Park Hotels & Resorts (PK), and Hilton’s timeshare business, Hilton Grand Vacations (HGV).  Each of the three companies should be well positioned in their sectors and likely deserve premium valuations to peers.  Analysts believe there is ~25% upside on a sum of the parts basis, but bears fear we’re at the peak of the lodging cycle and increased competition from the sharing economy (AirBnB, HomeAway, etc).

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