Insider Buying at ARNC Warrants Further Investigation
Arconic, Inc. (ARNC) is on our radar for a new reason (beyond being on the Spinoffs calendar of 30 stocks): its new CEO John Plant bought $4m shares on the open market, the first significant boost to his personal shareholding at any of the companies he's led. We take a closer look at his track record, as well as the involvement of activist investor Elliott Management.What's Interesting? The Edge Ingredients...
The market may not seem to like this major aluminum player in terms of total return since its split with the upstream operations (Alcoa Corp., AA) in November 2016, but by all indications, ARNC’s current CEO is committed to shareholders and fully incentivised for growing the company. His significant insider buying lately has indicated his commitment, and our interest in this situation is only increased by the upcoming split (which business to be Spun and which retained is still unclear) and the continued involvement of activist investor Elliott Management. The revolving door on the CEO’s office seems to have stabilized for now, with Elliott approving of the Spinoff plan despite the current top officer not specifically being their ally in their fight for value creation. With little growth over the past two years and many changes coming, now may be the time to take a closer look at ARNC.
Arconic is engaged in lightweight metals engineering and manufacturing. The company's segments include: Engineered Products and Solutions, which produces products that are used mainly in the aerospace (commercial and defense), industrial, commercial transportation, and power generation end markets; Global Rolled Products, which produces aluminum sheet and plate for a variety of end markets, and also produces aseptic foil for the packaging end market; and Transportation and Construction Solutions, which produces products that are used in the commercial transportation and nonresidential building and construction end markets, and also produces aluminum products for the industrial products end market.
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.
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