151 documents showing 121–151
Fannie Mae & Freddie Mac FNMA / FMCC
Reformed GSEs worth $23-$47/share vs $3.98 today — 6x to 12x upside
Allergan AGN
Valeant's Outsider-CEO model delivered 2,544% TSR (25x) in six years under Mike Pearson
PepsiCo, Inc. PEP
PepsiCo has chronically underperformed because its 'Power of One' holding-company structure suffocates Frito-Lay and Pepsi; separate them into two focused companies and the combined value will re-rate materially higher.
FirstGroup plc FGP
FirstGroup's post-Laidlaw complexity and high-cost debt have crushed returns; spinning FirstGroup US to yield-hungry US investors, selling Greyhound, and right-sizing the balance sheet unlocks up to 191p.
Bob Evans Farms, Inc. BOBE
Bob Evans trades at a conglomerate discount; spinning BEF Foods, monetizing 482 owned restaurants via sale-leaseback, and tendering at $58 unlocks ~$78.50/share.
PepsiCo, Inc. PEP
PepsiCo's snacks and beverages are structurally incompatible — Trian demands a Mondelez merger plus beverage spin (or a clean snacks/beverages separation), unlocking up to $175/share by 2015 vs. $85 today.
Nintendo Co., Ltd. 7974.T
Nintendo trades at 0.9x book with 67% of market cap in net cash; publishing Mario and Pokémon on iOS/Android unlocks freemium upside of 97-240%.
Spectra Energy Corp SE
Spectra Energy's conglomerate structure masks a premier energy infrastructure franchise; a three-step breakup — drop-down to SEP, WE IPO, DCP separation — unlocks $41-$48/share (32-55% upside).
Procter & Gamble PG
P&G earns $4 EPS today but should earn $6 by FY2016 at 24% EBIT margin
The Timken Company TKR
Timken's bearings-plus-steel conglomerate masks value; separating the two pure-plays unlocks 29% upside to $68 and ends Timken-family board capture entrenching the status quo.
Apple Inc. AAPL
Apple's $137B idle cash depresses its P/E; distribute 'iPrefs' — tax-free perpetual preferred stock paying 4% — to unlock ~$150/share without spending a dollar of cash.
Danone BN.PA
Danone is a world-class health-focused food company trading at trough multiples and a 1.5x P/E discount to Nestle; rerating to historic levels implies ~€78 vs €48, +62% upside by 2014.
ADT Corporation ADT
ADT is drastically under-levered post-Tyco spin; levering to 3.0x EBITDA and repurchasing ~30% of the float delivers ~44% upside to a $55 target.
TPC Group Inc. TPCG
TPC Group's $40/share take-private by First Reserve/SK Capital is a self-dealt, low-balled sale; a proper auction plus MLP re-rating would deliver materially higher value to shareholders.
Alexander & Baldwin (ALEX); GenCorp (GY); Brookfield Residential Properties (BRP)
Three stocks — ALEX, GenCorp, Brookfield Residential — hide land assets on their balance sheets at decades-old cost, offering 46-286% upside once marked to market.
Lazard Ltd LAZ
Lazard's premier advisory and asset-management franchise trades at a discount; executing the April 2012 plan to 25%+ margins, disciplined capital return, and stronger governance can nearly double the stock to ~$51.
J.C. Penney Company, Inc. JCP
Ron Johnson (Target, Apple Retail) can repeat his retail magic at chronically mismanaged JCP
Tronox Incorporated TROX
Post-Exxaro Tronox is the lowest-cost, fully-integrated TiO2 producer; levering up for a $24-$43/share special dividend plus relisting unlocks $183-$194/share, 56-66% upside.
Lowe's Companies, Inc. LOW
LOW trades at 13.3x depressed EPS with ~8% FCF yield — cheap
Fortune Brands Home & Security FBHS
Orphaned post-spin-off stock — recovery optionality mispriced at $13
Green Mountain Coffee Roasters GMCR
GMCR's $9 EPS bull case ignores a smaller TAM, falling K-cup attachment rates, a September 2012 patent cliff, and accounting shenanigans at fulfillment agent MBlock — realistic EPS is ~$3.50.
Iron Mountain Incorporated IRM
IRM's core storage is a compelling REIT — conversion unlocks ~$10.58/share in tax savings plus cap rate re-rating
General Growth Properties GGP
GGP is worth ~$20/share sum-of-parts ($15 PF GGP + $5 GGO) vs. $14 price — 43% upside by year-end
Mall REIT sector (long General Growth Properties) GGP
Mall REITs still trade at 7.8% cap rates vs. 6.3% Baa — a historically wide spread
Corrections Corporation of America CXW
CXW trades at a 12% cap rate vs ~7% for Health Care REITs with near-identical attributes
Realty Income Corporation O
Tenant base is mostly junk-rated discretionary retailers with high bankruptcy risk
Target Corporation TGT
Target owns 95% of its buildings — more real estate than any big-box peer, worth $39bn replacement value
Wendy's International WEN
Wendy's is 93% a brand-royalty and real-estate business masquerading as a restaurant chain
McDonald's Corporation MCD
McDonald's is fundamentally not a restaurant company — 78-86% of EBITDA comes from Brand McDonald's
McDonald's Corporation MCD
McDonald's real estate is worth ~$46bn, ~94% of enterprise value, but trades like a restaurant stock
Fluor Corporation FLR
Fluor's $4bn NuScale stake masks a transformed EPCM core trading at just 2.8x EBITDA; separating NuScale unlocks a re-rating to peer 6-13x multiples.