On October 17th, marijuana goes fully legal in Canada. This event, combined with the Canopy Growth Corp investment made by Constellation Brands / Stories of Coca-Cola entering CBD beverages have made the cannabis space the most discussed sector in the past few weeks. What events will unfold over the upcoming months that will either continue to validate the sector OR perhaps send these sky-rocketing valuations back down to earth? I sat down with Navy Capital's Sean Stiefel to discuss. Navy was formed in 2014 as a fund specifically designed to participate in the upside from cannabis.
Athenahealth shares have tumbled following recent media coverage that strategics such as UNH and Cerner are walking away from the process. Perhaps Elliott buying ATHN isn't the best-case-scenario for investors, but it's still a scenario that is worth examining.
Yum China plummeted to $30 last week after headlines that Hillhouse is ending its pursuit, but is the process truly over?
CBS: Is it now in play?
In part II of my interview with Bloomberg M&A reporter Ed Hammond, we discuss how deals can get off the ground, and why so many times the process can die out midway through. In "Five Questions" I ask Ed "What's the biggest deal that's NEVER happened?" ..."Has anyone ever approached you with a bribe to reveal information?"...and "What's the most UNUSUAL way you've come across a scoop?"
The event space is littered on a daily basis with rumors of deals and activism, the overwhelming majority of which are false. In Part 1 of what I consider to be a MUST-LISTEN interview, Bloomberg M&A reporter Ed Hammond explains the role journalists play in the deal-process. We discuss how incorrect journalism, for example the Nokia for Juniper story, makes it to press ONLY to be quickly refuted. And lastly we talk sources and their motivations, which can range from vanity, to humanity...to revenge.
As it's Episode 12, it's time for a quarterly review. I examine the the Top 10 most intriguing situations in the world of deals, activism and merger arbitrage. Companies discussed include Yum China, Tribune, Mattel, Nielson & Arconic.
In segment 1:
I reveal my biggest holding, and what I believe to be the most intriguing deal situation on the board.
Lehman Brothers. Allied Capital. Green Mountain Coffee. There was a moment in time where if David Einhorn shorted a stock, it was regarded as a possible death sentence for the shares. However, for both Einhorn and contemporary Bill Ackman, the last few years have proven to be difficult. In part II of my interview with Whitney Tilson, we discuss these two legendary hedge fund managers, and Whitney describes who he believes is the best hedge fund that no one's ever heard of .
Decoding the Short of the Decade: The origins, details, risks and aftermath of perhaps this decade's greatest short: Lumber Liquidators. I sit down with Whitney Tilson to discuss the process, and talk a little Tesla.
Shares of Eli Lilly have exploded 14% since their announcment to spin-out its animal health division "Elanco". However, one of Elanco's divisons, Agri Stats, is at the heart of one of the largest class-action lawsuits in the country. If found guilty Elanco could face billions in damages. In this episode I interview Tim Ramey, analyst at Pivotal Research, who downgraded Tyson Foods in 2016 and lowered his price target from $100 to $40 after reading the accusations involving Agri Stats. Not only do we discuss TSN, but we look back at his time covering Herbalife, and his relationships with Bill Ackman, David Einhorn and Carl Icahn during that time period.
Open: The Eli Lilly animal health spinco "Elanco
4:45: Interview with Tim Ramey of Pivotal Research on Tyson Foods
13:30: Interview continues but switches to Herbalife
In this in-depth interview, Jason Varano, Executive Director at Nomura Securities who focuses on Special Situations / Risk-Arbitrage sits down to discuss NXPI/QCOM, AABA/BABA, DVMT/VMW, AKRX and a little CBS/VIAB (the interview was conducted July 26th, the day before the New Yorker article on Moonves)
Open: Why I'm short CBS
35:00 5 QUESTIONS
I sit down with Michael Batnick, author of "Big Mistakes: The Best Investors and Their Worst Investments."
Some of Wall Street's greatest missteps are well documented: Bill Ackman's attempt at activism in JC Penny, or Warren Buffet's go-around with Salomon Brothers are two famous examples. However the great investors of the 19th, 20th and 21st centuries ALL have their own investment blunders. Some went on to thrive after, while others called it quits. Michael Batnick and I spend 30 minutes analyzing these infamous lapses in judgement, INCLUDING Mark Twain's (yes the writer!) attempts at venture capitalism (yes he passed on an investment in Alexander Graham Bell's telephone)