ToffCap’s Monday Monitor is our weekly overview of actionable event-driven trades and special situations.
Disclaimer. ToffCap’s Monday Monitor is provided for informative purposes only. No due diligence has (yet) been performed on the names on this list. The list might change strongly on a regular basis. This overview does not constitute advice; always do your own due diligence. The list is dynamic; it continues to grow and change. If you have interesting additions to the list, feel free to contact us at contact@toffcap.com or on Twitter.
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This week’s additions and highlights
1. SPIN-OFFS
Toro (TORO US). Shipping company Toro is spinning their Handysize tanker (just the one). Spinco will be called Robin Energy. Toro shareholders will receive one common share of Robin for every eight Toro common shares. Robin has applied to have its common shares listed on the Nasdaq.
2. STRATEGIC ALTERNATIVES & REVIEWS
(Potential take-outs, asset sales, M&A, etc.)
Dream Residential REIT (DRR Canada). Dream Residential announced a strategic review as it continues to trade at a large discount to NAV, which it pegs at $13.4, ~70% higher than the current share price. The strategic review includes selling the company, a merge, liquidation via asset sales or a JV. Dream is pretty confident about its NAV; this reminds us of old TMM flag ERE, which successfully unwinded (still is) via asset sale and shareholder returns.
Bremworth (BRW New Zealand). Bremworth, a carpet manufacturer with 1/3 of its market cap in net cash, recently announced that it initiated a strategic review after being approached by several parties. This one could be interesting given added post-insurance cash settlements (not included in the previous net cash calculation).
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