Filings from June 15-21, 2014

Here is the quick view of what was filed.

Spin Offs:

Seventy Seven Energy (Chesapeake Oilfield Services) had an update to their forms. small changes to the financials with emphasis on the debt levels, and changes to the legal documents of separation.

New Senior Investment Group, Inc. is spinning off from New Castle Investment Corp. (NCT). This will separate the senior living REIT from the golf and real estate debt. New Senior Investment Group will have demographics on its side, but potentially an over flooding of the market for that age group and currently has a negative FFO. This one doesn’t look promising from the quick view.

Keysight Technologies, Inc. (KEYS) is being spun off from Agilent Technologies, Inc. (A). Keysight is the medical measurement business, which is separating from the remaining life sciences, chemical analysis, diagnostics and genomics business. It appears to be a relatively even split down the middle of revenue. Neither look relatively cheap in price nor is either small enough to be overlooked. They both appear to be average businesses. This does not appear to be a great investment at first glance.

NorthStar Asset Management Group, Inc. (NSAM) is spinning off from NorthStar Realty (NRF). Both have negative net income, but positive cash flow. This is based on the cash flow reconciliation, the difference appears to depend on the investments made. For example, the net income loss nearly doubles due to private equity investments and then is offset with gains from CDOs. It appears both entities to be investments in real estate related assets. This appears to be less of a business and more of a fund investment. That is not the focus of this blog and therefore it is ignored.

Kimball Electronics, Inc. (KE) is being spun off from Kimball International, Inc. (KBALB). The combination of a furniture manufacturer and electronics assembly company appears to have not been the wisest of ideas. The split between the two entities is one that makes common senses. Kimball International, Inc. as of Friday June 20, 2014 closing price, had a market capitalization of approximately $640 million. Looks like only one analyst following this stock. It appears to be mediocre business, but a more in depth look might show something promising. Look for analysis in the next few weeks.

Mergers:

Hastings Entertainment Inc. (HAST) is being sold for $3 a share to become a private entity.

Quinpario Acquisition Corp (QPAC) is merging with Jason Partners Holding Inc. in a cash and stock deal.

MTR Gaming Group Inc. (MNTG) and Eldorado HoldCo LLC have agreed to merge for cash or stock as the investor choses.

Pokertec, Inc. (PTEK) and Multimedia Games, Inc. (MGAM) are merging for cash.

Safeway, Inc. (SWY) and Albertson’s will merge for cash and the contingent payment for Casa Ley and real estate holdings. While the contingent payment might have some added value over the projected value, the consideration of a Mexican grocer sale is no an easy valuation. Perhaps this is something you can find value in.

Winthrop Realty Trust (FUR) is planning a liquidation.

IPOs:

No strategy was developed in the last week. Suggestions are welcomed.

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