Monthly Archives: June 2017

HP Enterprise (HPE) – Spinning-off its way to happiness ?

Posted on by 41 comments

DISCLAIMER: THIS IS NOT INVESTMENT ADVICE. PLEASE DO YOUR OWN RESEARCH !!!!!

Management summary:

  • HPE, the enterprise arm of the old HP looks attractive on a sum-of-part valuation
  • following 3 spin-offs in 2 years, my model indicates an upside of ~40% in the base case and ~70% in an optimistic case
  • Some “soft catalysts” are on the horizon such as the upcoming Software “spin -off merger”, further share buy backs and a “normal” financial year
  • management acts shareholder friendly, has a clear strategy and has created significant shareholder value since 2011
  • major risk is clearly a further detoriation of the Enterprise solution business which had a bad start into fiscal 2017

Read more

Spin-off watch: SCA / Essity

Posted on by 9 comments

One of the biggest and highest profile Spin-offs in Europe this year is clearly the separation of Swedish SCA (“Svenka Cellulosa Aktiebolget”) into an “integrated forest product group” which keeps the SCA name and a consumer product entity named “Essity”.

global-images-general-newchapter-new-chapter-610x400

SCA communicated this already more than two years ago and starting this week, June 12th the spin-off is actually executed, with every SCA shareholder receiving one Essity share per SCA share.

Read more

Travel series part 7 – Tripadvisor (TRIP) follow up & more thoughts on online travel

Posted on by 12 comments

This is the follow-up post on the intitial Tripadvisor post from last week.

So where is the upside ?

After “bashing” them in the first post, the question is: Is there an upside and if yes where ?

CEO & Capital management

With Steve Kaufer, the CEO, one of the founders is still on board. His salary is rather modest but he got plenty of options awarded in the previous years. According to Bloomberg, he received option in the original value of ~33 mn USD in 2014 to 2016. He owns  shares in an amount of 17 mn USD, which is not huge but still not insignificant.

In his 2016 letter to the shareholders he writes the following:

Read more

Some links

Posted on by 10 comments

Market folly has a great collection of pitches from the London Value Investor conference

A good summary why most investors these days hate banks

Wexboy with a very nice write-up on a company called Applegreen

The unstoppable rise of the QR code in China

Interesting thoughts about the carnage in retail stocks and a follow-up post

Wow, my blog has been included in the “50 Of The Best Investing Blogs On The Planet”