The Edge Group LLC

The Edge Group - Global Fundamental Catalyst Investing. The Edge provides investors with access to hidden corporate value from Global Special Situations using a pioneering approach to investments. Founded in 2005 by fund management and investment banking professionals to provide high quality, private equity-level research on Global Corporate Divestitures for the benefit of fundamental event-driven, growth and value-oriented investors in this difficult to track, but proven investment space.

The Edge will look to screen and analyze include Spinoffs; Reverse Morris Trusts; Squeeze Outs; Privatizations; Demutualization; Deep Discounted; Rights Issues; Rights Offering; Restructuring; Insider Purchases / Buying Change of Management / CEO Change; Deteriorating fundamentals; Post-Bankruptcy; Reorganization; Tender Offer; M&A Deals; Secondary Offering; Share Swap; Thrift Conversions; Share Buybacks; Activist; Mergers. All analyzed from a fundamental point of view.

 

 

Regulatory Information

  • Regulatory Status: Financial Conduct Authority (FCA)

Alexander Korda

Strategic Review Concludes with Edge-Anticipated Chinese Listing

In January 2020, we highlighted Canadian Solar, Inc.’s (CSIQ) strategic review for the split between its solar panel manufacturing and energy services segments, and our belief in further value in listing the former in China. As of July 27, the company has concluded this strategic review with an IPO of the MSS segment on the Chinese markets. Our previous valuation anticipated a Spinoff of MSS, so we have updated it to reflect the new strategy. What We Said… As of March 27, 2020: We believe the Spinoff of Canadian Solar, Inc.’s (CSIQ) MSS business is a strong potential catalyst for the company,...

Alexander Korda

Potential Activist Break-Up of Leading Pure-Plays

Chemed Corp. (CHE) offers a rare opportunity to Spinoff into two pure-play services companies with very little leverage, creating immediate value for shareholders in the event of a split. This potential activist break-up would separate the currently unrelated hospice care (VITAS Healthcare) and plumbing services (Roto-Rooter) segments, both of which are dominant players in their respective spaces. Read the attached analysis for more of our thoughts on why this break-up makes sense. What's the Opportunity? Chemed Corp. (CHE) operates in two unrelated businesses, (i) VITAS Healthcare, the hospi...

Alexander Korda

THE EDGE HIGH CONVICTION IDEA: MSGE

Basketball starts up next week (July 30, 2020) and the return of live sports is ongoing through to the end of the year, and Madison Square Garden Entertainment Corp. (MSGE) is an immediate beneficiary to this reopening - making it imperative that investors get involved now ahead of the asset valuation gap closing. The major long-term catalyst is of course the completion and opening of the MSG Sphere in Las Vegas, to be the Mecca of e-sports and live music entertainment. What's Happening? The Edge Intelligence... With the NBA finally making a comeback starting next week (July 30, 2020) and the...

Alexander Korda

E-Sports Traction & Discounted Valuation Warrants MP Entry

Our examination of the top gaming companies in the US has shown a valuation discount to Chinese media giant Tencent, warranting a Model Portfolio entry into Electronic Arts, Inc. (EA) as it continues to leverage on the growth potential in the gaming space and as e-sports gain traction in the market. The Edge View... Tencent Holdings Ltd. (TCTZF, Market Cap $647bn): Among Tencent's many other media holdings, the company is owner of two of the most successful current gaming franchises, Fortnite (40% ownership in Fortnite’s parent Epic Games) and PlayerUnknown's Battlegrounds (PUBG). Additionall...

Alexander Korda

Post-Spin Buy for Parent on Value & Takeover Potential

Travis Perkins Plc (TPK LN) announced the Spinoff of its struggling DIY retailer Wickes stores in the UK, leaving the RemainCo with its growing professional home improvement offerings. The company's position as a leader in the space and its improved EBITDA margin profile makes it an attractive post-Spin takeover target for US home improvement players looking for international exposure. The Spin is expected in 2H 2020, and our valuation shows significant upside for the Parent ex-Spin. What's Happening? Travis Perkins Plc (TPK LN), the largest builders’ merchant retailer, will Spinoff its slowi...

Alexander Korda

Strategic Review Concludes with Edge-Anticipated Chinese Listing

In January 2020, we highlighted Canadian Solar, Inc.’s (CSIQ) strategic review for the split between its solar panel manufacturing and energy services segments, and our belief in further value in listing the former in China. As of July 27, the company has concluded this strategic review with an IPO of the MSS segment on the Chinese markets. Our previous valuation anticipated a Spinoff of MSS, so we have updated it to reflect the new strategy. What We Said… As of March 27, 2020: We believe the Spinoff of Canadian Solar, Inc.’s (CSIQ) MSS business is a strong potential catalyst for the company,...

Alexander Korda

THE EDGE HIGH CONVICTION IDEA: MSGE

Basketball starts up next week (July 30, 2020) and the return of live sports is ongoing through to the end of the year, and Madison Square Garden Entertainment Corp. (MSGE) is an immediate beneficiary to this reopening - making it imperative that investors get involved now ahead of the asset valuation gap closing. The major long-term catalyst is of course the completion and opening of the MSG Sphere in Las Vegas, to be the Mecca of e-sports and live music entertainment. What's Happening? The Edge Intelligence... With the NBA finally making a comeback starting next week (July 30, 2020) and the...

Alexander Korda

E-Sports Traction & Discounted Valuation Warrants MP Entry

Our examination of the top gaming companies in the US has shown a valuation discount to Chinese media giant Tencent, warranting a Model Portfolio entry into Electronic Arts, Inc. (EA) as it continues to leverage on the growth potential in the gaming space and as e-sports gain traction in the market. The Edge View... Tencent Holdings Ltd. (TCTZF, Market Cap $647bn): Among Tencent's many other media holdings, the company is owner of two of the most successful current gaming franchises, Fortnite (40% ownership in Fortnite’s parent Epic Games) and PlayerUnknown's Battlegrounds (PUBG). Additionall...

Alexander Korda

Post-Spin Buy for Parent on Value & Takeover Potential

Travis Perkins Plc (TPK LN) announced the Spinoff of its struggling DIY retailer Wickes stores in the UK, leaving the RemainCo with its growing professional home improvement offerings. The company's position as a leader in the space and its improved EBITDA margin profile makes it an attractive post-Spin takeover target for US home improvement players looking for international exposure. The Spin is expected in 2H 2020, and our valuation shows significant upside for the Parent ex-Spin. What's Happening? Travis Perkins Plc (TPK LN), the largest builders’ merchant retailer, will Spinoff its slowi...

Alexander Korda

Valuation Mismatch Leads to Post-Spin MP Entry, +57% Upside

Yesterday was the first day of trading following the unique European Spin-Merger between Metso Corp. (MEO1V FH) and Outotec Corp. (OTE1V FH). This transaction created what is now Neles Corp. (NELES FH) and Metso Outotec Corp. (MOCORP FH), and the resulting valuation mismatch provides an opportunity for investors to see value creation for the Spin-merged mining equipment services company. Meanwhile, NELES (Parent) looks fully valued. Read on for more on their first day's performance. What's Happened? The Edge Intelligence... Metso Corp. (MEO1V FH) performed a unique spin of its Minerals busine...

Alexander Korda

Potential Activist Break-Up of Leading Pure-Plays

Chemed Corp. (CHE) offers a rare opportunity to Spinoff into two pure-play services companies with very little leverage, creating immediate value for shareholders in the event of a split. This potential activist break-up would separate the currently unrelated hospice care (VITAS Healthcare) and plumbing services (Roto-Rooter) segments, both of which are dominant players in their respective spaces. Read the attached analysis for more of our thoughts on why this break-up makes sense. What's the Opportunity? Chemed Corp. (CHE) operates in two unrelated businesses, (i) VITAS Healthcare, the hospi...

Alexander Korda

Pick of the Fallen Spins: KAR

Our previous Fallen Spinoff analysis (July 2019) saw value creation in Perspecta, Inc. (PRSP), and our entry recommendation at $23.70 rallied to its pre-pandemic high of $29.50 in February 2020 (a +25% return, now back to our recommendation levels dropping with the market). Our newest screening process yielded KAR Auction Services, Inc. (KAR), which we believe has several catalysts for growth and will create value in the post-pandemic used auto auctions space. Fallen Spinoff Screening Criteria... We screened KAR Auction Services, Inc. (KAR) out from previously completed Spinoffs based on the ...

Alexander Korda

Analysis: Historic Opportunity to Bring 5G to the United States Via Activism

With no significant domestic 5G vendor, the US is losing to international players like Ericsson (Sweden), Nokia (Finland) and Huawei (China). Therefore, we believe there is a strong case for an activist investor to bring 5G to the US by pursuing a suitor to acquire Nokia, which is available at a discounted valuation. With the right leadership, financial muscle, and US government backing, Nokia will make a formidable competitor and eliminate US concerns over the risk of losing the 5G struggle. The Edge View... As all the major telecom carriers rush toward the deployment of 5G, the much-needed ...

Alexander Korda

Gilead’s Coronavirus Wonder-Drug Remdesivir Masks a Board Contagion – The Edge Calls for Spinoff

The Edge View... When Gilead Science, Inc.’s (GILD) CEO Daniel O’Day pushed the button on his March 28 open letter stating the firm’s new wonder-drug (the antiviral Remdesivir) could work against COVID-19, he had every hope the company's share price would soar - and he was right. The fact that GILD donated around 140,000 treatment courses to expedite its possible emergence into America’s emergency response offered a much-needed boost, and the company is now going full-steam ahead with the experimental drug’s pandemic PR strategy. However, O’Day had other reasons to get ahead of the news agend...

Alexander Korda

Strong Insider Buying Pattern Warrants Entry

One of the top players in the agribusiness and food industry and part of the big “ABCD” four that dominates the space (Archer Daniels Midland (ADM), Cargill and Louis Dreyfus), Bunge Ltd (BG) witnessed fourteen different open market purchases in 2020, with two of those buys holding a stronger buying signal than others. With additional factors at play include the presence of activist investors, new CEO and a potential separation on the table, we’re going to take an initial stake at current levels. What's Interesting? The Edge Intelligence... During the month of February and March 2020, there w...

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