Further Upside After Strong Three-Way Listing, MP Increases
Following the completion of its simultaneous three-way Spinoff of Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS) and the merger with Raytheon Co. (RTN) to create Raytheon Technologies Corp. (RTX, Parent ex-Spins), the three newly separated companies provided strong returns on a down market day last Friday (April 3). All three entities have long-term value creation opportunities ahead, given their market-leading positions, higher margins and further potential upsides.The Edge Recommends Investors to Accumulate RTX & CARR and Hold OTIS at Current Levels
RTX is the Leader in Aerospace & Defense / Trading at a 32.9% Discount to Peer Average
CARR's Leverage Concerns Seem Priced-In / OTIS Shows Long-Term Upside in Bull Case
Three-Way Spinoff Completed April 3, 2020 / Outperformed S&P 500 Index on the Day
RTX & CARR Increase Spinoff MP Weightings by +2% at the End of Today's (April 6) VWAP
Carr's Group operates across the agriculture and engineering sectors which supplies products and services to countries around the world. Co.'s agriculture division includes an international feed block supplement business, and in the U.K., this division also sells animal feed, fertilizer, animal health products, fuel, farm machinery and rural supplies. Co.'s engineering division designs, manufactures and supplies precision parts, equipment, robotics and remote handling products. These products and services are supplied primarily into the nuclear, defense and oil and gas markets.
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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