Excellent Returns For Long-Term Investors After a 25% S&P500 Index Decline

The average one year S&P500 index return when it was 25% below a 52wk high was +23.9%, the average 3 year return was +40.3%, and the lowest 3 year return was -3.9%. Many analysts warn of risks in the current market, but the greatest danger has already passed. Declines of 25% have only happened during … Continue reading Excellent Returns For Long-Term Investors After a 25% S&P500 Index Decline

Segal and Degel Fight for First Capital REIT

Ewing Morris Investment Partners (EM) is working with First Capital (FCR) founder Dori Segal to push for Board changes at the REIT. FCR units have been weak and trade at a bargain valuation which appears to reflect broad market factors. EM has not yet made a compelling argument for new management or operating strategy. First … Continue reading Segal and Degel Fight for First Capital REIT

Nam Tai Property: I Bought A Ticket To This Circus

Dissident shareholders led by ISZO Capital recently replaced the board of Nam Tai Property (NTP) which had been controlled by Chinese property developer Kaisa Group. Significant recent news: ISZO Capital's campaign to replace a majority of the Board of Directors was successful at a shareholder meeting held on 11/30/21 (LINK)Kaisa's 24% stake was seized by … Continue reading Nam Tai Property: I Bought A Ticket To This Circus

H&R REIT: Transform & Roll Out

H&R REIT announced that over 5 years it will transform from a diversified REIT into one focused on its thriving Lantower Residential business: Accelerated residential development will deliver meaningful NAV appreciationSpecialization will enhance investor appeal and eliminate the substantial discount at which units currently tradeSpinoff of H&R's malls into a new well-capitalized independent entity positions … Continue reading H&R REIT: Transform & Roll Out

ARTIS REIT: Lagging Price Performance Due To Lack of Investor Interest In The REIT’s Vague Vision

Artis' unit price has underperformed the Canadian REIT sector year to date, since the 3/10/21 "Vision" announcement, and over the long-term. Artis' new management team has moved boldly to build value for investors in 2021 through asset sales and unit repurchases, however the REIT has not been successful at reducing the discount at which the … Continue reading ARTIS REIT: Lagging Price Performance Due To Lack of Investor Interest In The REIT’s Vague Vision

SOHU: $40/ADS Of Cash, But What Is The Plan?

Following Tencent's buyout of their jointly controlled Sogou search business, Sohu has: US$1.57Bn ($40/ADS) of cash equivalents and short term investments. The company recently announced a $100mm share repurchase program.Consistently profitable Changyou games business which will earn net income of approximately $228mm in 2021 and Sohu could retain a stake worth $56/ADS following a successful … Continue reading SOHU: $40/ADS Of Cash, But What Is The Plan?

CXP: Boutique Office Landlord Reviewing Strategic Alternatives

Columbia Property Trust (CXP) is currently reviewing strategic alternatives following receipt of an unsolicited $19.50/share buyout offer. A favorable outcome should deliver $21/share. The stock could drop to around $16 if there's no deal. Company Background CXP has a concentrated portfolio of high quality properties in New York City (53% of assets), San Francisco(29%), and … Continue reading CXP: Boutique Office Landlord Reviewing Strategic Alternatives

NEWA: Newater On Track For $3.65 Buyout

Newater Technology is a Chinese water treatment business that will soon be privatized for $3.65/share. Financing will primarily be provided by Yanzhou Coal Mining, a major state-owned enterpriseShareholder vote is 7/12. Closing expected in 3Q.Merger progress was delayed by a mysterious last-minute competing bid. Corporate history Newater was formed in 2012 and operates in China … Continue reading NEWA: Newater On Track For $3.65 Buyout

Long SOHU Short SOGO

I was going to post this idea Friday morning, but then a Reuters scoop significantly affected the share prices. The trade is now slightly less attractive, but readers may still find the commentary useful The current market price of SOGO implies a high likelihood that its $9/ADS acquisition by Tencent will be successful while the … Continue reading Long SOHU Short SOGO

Jardine Matheson To Simplify Corporate Structure Through Privatization of Jardine Strategic

Elimination of the dual holding company structure will improve governance and simplify valuation analysis (company announcement). The discounted price will be significantly accretive for Net Asset Value and Earnings of Jardine Matheson. Here are excerpts from notes about the Jardine Group that I shared privately last fall. I am not sharing a valuation analysis so … Continue reading Jardine Matheson To Simplify Corporate Structure Through Privatization of Jardine Strategic