Hold New Industrials Spins for Long-Term Value
Both Carrier Global Corp. (CARR) and Otis Worldwide Corp. (OTIS), the new Spinoff companies from Raytheon Technologies Corp. (RTX), beat expectations in their first earnings post-Spin (April 3, 2020) and saw stock price jumps on the days of their releases. CARR and OTIS are resilient in the face of the ongoing pandemic, with sales back to pre-pandemic levels for the former and the latter seeing increased domestic sales. Continue to hold for long-term value creation from these industry leaders.Hold CARR & OTIS at Current Levels / Enter or Increase Below $17 & $48, Respectively
Resilient Pricing & Portfolio Wins Support Revenues in Short-Term / Both Co's Provided FY20E Outlook
CARR: China Revenues at Pre-Pandemic Levels / Operating at 100% Capacity / Aggressive Cost Cuts
OTIS: Declared Dividend (1.5% Yield) / New Equipment Sales & Strong Repair Revenue (80% of Service Sales)
CARR & OTIS are Current Spinoff Model Portfolio Holdings
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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