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Spinoff of a larger company

— position long EY

Thesis

The spinoff was trading at a 50% discount to intrinsic value and involved a well-respected CEO. The management was announcing value-enhancing catalysts, such as spinning off assets and returning cash to shareholders, making it an attractive investment despite its declining stock price.

Did it work?

Not yet analyzed

No outcome has been scored for this pitch yet, so there's no verdict to show.