Category Archives: Spinoffs

New Article at Seeking Alpha

I decided to begin publishing at SeekingAlpha.com, and my first article is now live: Cable One Has More Room to Run. As I note in the article:

Cable One (NYSE: CABO) has had a nice run since its spinoff from Graham Holdings Company (NYSE: GHC) in mid-2015. Since then the stock is up nearly 60%, but with Cable One’s valuation now at 11.8x pro forma forward EBITDA, are the good times over?

I continue to like Cable One despite the rise. Click over to SeekingAlpha to read the whole article and why the stock could be poised for further gains.

Last Week for Our Top Dividend Stock for 2016 Report

With 2016 in its final few months, I’m about to close access to Our Top Dividend Stock for 2016 report. I picked Care Capital Properties (CCP), which was a 2015 spinoff from Ventas (VTR). Care Capital trades at a ridiculously low multiple to cash flow, and it retained the managers that nursed the company from inside the top-rated Ventas for years. I still think the market isn’t giving the stock the credit it deserves.  To see our entire report on the company, just drop your email in the box at the top of the page.

The report will remain available until November 5.

Good Riddance to NorthStar Management

NRF imageNorthStar Realty Finance (NRF), NorthStar Asset Management (NSAM), and Colony Capital (CLNY) finally agreed to the tie-up that they had pre-announced a few weeks ago. The move cures a number of problems at the troubled NorthStar businesses, the most important of which is the company’s own management, who are largely ousted as part of the merger of the three real estate companies. But management will have their pound of flesh before they exit, including a huge takeover premium for insiders. Yep, the same management who helped create this mess takes home another huge payday. Continue reading Good Riddance to NorthStar Management

Finally Some Sense On NorthStar From An Investment Bank

NRF imageWe finally got an investment bank to write up a balanced synopsis of the situation at NorthStar Realty Finance (NRF). UBS came out with a short report on the REIT, and well, let’s just say it wasn’t the ridiculous “sky is falling” hatchet job that appeared yesterday from KBW and that we subsequently skewered for the intellectually dishonest exercise that it was. Here’s the text of that UBS report. Continue reading Finally Some Sense On NorthStar From An Investment Bank

This NorthStar Downgrade is a Joke, Right?

NRF imageThe NorthStar downgrade – where a Keefe Bruyette Woods analyst lowered his price target on NorthStar Realty Finance (NRF) from $23 to $13 per share – must be a joke, right? This downgrade comes from the same analyst we highlighted in November for his arbitrary discount for external management. Now he’s back with more of the twisted logic of that earlier report, except this time, in addition to the lower price target the analyst lowered his rating from outperform to market perform. All this follows after the stock has fallen well below even the revised price target of $13. Cart, meet horse. So what’s so backward about this downgrade? Continue reading This NorthStar Downgrade is a Joke, Right?

NorthStar’s Decline — Insiders Don’t Care?

NRF imageNorthStar’s decline of 74%? Investors have been right to grouse about the stock performance of NorthStar Realty Finance (NRF). The last year has been abysmal, with the stock down a whopping 74% from its 52-week high. Much of the blame has been leveled at management and its self-serving practices, and investors have attributed management’s lack of alignment to the stock’s performance. Certainly some of the blame is warranted, but insiders still do own significant stakes in NorthStar, and have purchased more recently. Moreover, their ownership, often in the millions and worth potentially at least three times its value today, still provides them a lot of incentive to make NorthStar Realty Finance a winner. Let’s look at the numbers. Continue reading NorthStar’s Decline — Insiders Don’t Care?

ConAgra To Spin Off a Frozen Potato Company?

CAGConAgra Foods (CAG) announced in November that it was spinning off Lamb Weston, its business unit focused on frozen potatoes. Yes, frozen potatoes. It sounds funny, but ConAgra is cleaning out the cupboard following a disastrous and ill-advised acquisition of Ralcorp a few years ago and the recent arrival of new CEO Sean Connolly. That decision was “assisted” by Jana Partners, an activist investor that owns 7% of the stock. But those expecting the Lamb Weston spinoff to happen in Fall 2016, as announced, might be disappointed. Continue reading ConAgra To Spin Off a Frozen Potato Company?

Better Buy: NorthStar Realty Finance or NorthStar Realty Europe?

NRF imageIt’s been quite a roller coaster for NorthStar Realty Finance (NRF) and NorthStar Realty Europe (NRE) over the past couple months. Both have plunged as investors have become increasingly concerned about their externally managed structures and, for NorthStar Realty Finance, the sustainability of its dividend. But which is the better buy? In fact, is one a better buy than the other? Continue reading Better Buy: NorthStar Realty Finance or NorthStar Realty Europe?

Now Available: Our Top Dividend Stock for 2016

We’ve just made available our latest report: Our Top Dividend Stock for 2016. This high-yield stock pays out more than 7%, yet is conservatively financed and should grow that payout for years. But no one’s heard of the company — hey, they haven’t even held a conference call! You can access our three-page report on this hidden company by dropping your name in the box at the top of the page.

This is a “buy it and forget it” kind of company that should be able to grow for years under the execs that made another company a stunning success over the last two decades. Now they’re back to do it again with a smaller company that they can grow quickly. I estimate the stock is worth 30% more than it’s trading for today, and a strong growth plan should lead to years of gains. We expect the management team to continue the solid work it’s already undertaken and to drive strong double-digit annual returns for years.

Should NorthStar Realty Finance Cut Its Dividend?

NRF imageNorthStar Realty Finance (NRF) pays a whopping 18% dividend yield, but should the REIT cut it? I’ve argued in previous posts that the stock continues to trade at a ridiculously low valuation – now at about five times cash available for distribution – because investors are tremendously fearful that the company will cut its dividend. But have investors punished the stock so much that a dividend cut is more than priced in? It certainly looks like it, and I think it would be quite stupid for the company to cut its payout. But let’s play devil’s advocate for a moment. Continue reading Should NorthStar Realty Finance Cut Its Dividend?