Filings from August 11-16, 2014

Spin Offs:

Xenia Hotels and Resorts, Inc. (XHR) will spin off from Inland America Real Estate Trust (IARE) as a hotel real estate trust. It would appear these hotels need significant capital improvement in the near term. Potential for IARE if the distribution is significant enough.

Keysight Technologies, Inc. (KEYS) and Agilent Technologies, Inc. (A) continue their separation.

Vista Outdoor, Inc. (VSTO) is spinning off from Alliant Techsystems, Inc. (ATK). Immediately following the spin off, Vista Outdoor will merge with Orbital Science Corporation to become Orbital ATK, Inc. (OA). The spin off will have ATK owning a remaining 53.8% of the spin off and therefore will have a controlling interest in the merged entity. As OA will trade separately this will create a stub stock situation for ATK. This complicated situation needs further investigation because following the value chain will be difficult and with any luck doing the work will be rewarded.

Vectrus, Inc. (VEC) is being spun from Exelis, Inc. (XLS) and was formerly a logistics division. XLS appears to be shrinking its overall revenue as defense spending slows. VEC has lower margins and appears to be decelerating at a faster pace than the main company. VEC will issue or obtain debt and then distribute that to XLS in order for XLS to survive the defense spending slow down. This smaller entity will be too large to be a takeover target. There does not appear to be much value in this transaction.

Asford, Inc. continues to be spun off from Ashford Hospitality Trust (AHT).

Mergers:

PLC Systems, Inc. (PLCSF) willl spin off RenalGuard and then merge with Viveve . Viveve is a foreign company and the spin off is expected to be public. PLCSF has a history of loss income and cash flows.

Sysco Corporation (SYY) and US Foods are in process of their merger.

Carmike Cinemas, Inc. (CKEC) and Digital Cinema Destinations Corp (DCIN) will merge for stock.

Coca-cola (COKE) purchased a 20% stake in Monster Beverage Corp (MNST).

Minnesota Municipal Funds (MXA) and Nuveen Funds (MXN) will merge.

IPOs:

C1 Financial, Inc. (BNK) is trading on the NYSE as a bank for entrepreneurs. It has a recent history of positive cash flows and income.

Capnia, Inc. is issuing stock at $8.50 and warrants valid until 2019 under the tickers CAPNU, CAPN, and CAPNW. This biotech firm has a history of losses and negative cash flows.

Otonomy, Inc. will trade at an estimated $16 on the NASDAQ under the symbol OTIC.  This biotech company also has a history of income and cash flow losses.

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