KEDM Lite Vol. 1
A low frequency but juicy strategy where the edge is government incompetence.
Let’s dig in…
This week’s additions and highlights
1. SPIN-OFFS
- No material updates this week
2. STRATEGIC ALTERNATIVES & REVIEWS
(Potential take-outs, asset sales, M&A, etc.)
- DSM-Firmenich (DSFIR Netherlands). dsm-firmenich finally sold its ANH unit. While the €2.2bn + €0.5bn earn-out was pretty much in line with what we expected, the market didn’t like. Sell the news? Or is the announced buyback too low? Whatever the reason, a reminder that this divestments significantly alters the financial profile of the company, pushing it all to more growth, higher margins, more pricing power. Cyclical headwinds have pushed the share price to strong lows. A catalyst could be the upcoming investor day in March. Quite sure it will be a bullish story.
- FMC Corporation (FMC US). FMC recently launched a strategic review. Results remain very weak and 2026 has been guided to be another down year. The review includes a potential sale, though management is prioritizing debt reduction (targeting $1bn via asset sales and licensing), shoring up the legacy portfolio, and managing the post‑patent decline of Rynaxypyr. There are some bright spots (eg New Active Ingredients), but the market is not pricing much for recovery… which is where the opportunity comes from. FMC still has some decent assets.
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Kuppy’s Event Driven Monitor (“KEDM”) is not a financial or investment advisor and the information contained in this publication is not intended to constitute legal, accounting, or text advice or individually-tailored investment advice and is not designed to meet your personal financial situation. The investments discussed in this publication may not be suitable for you. You are required to conduct your own due diligence, analyses, draw your own conclusions, and make your own investment decisions. Any areas concerning legal, accounting, or tax advice or individually-tailored investment advice should be referred to your lawyers, accountants, tax advisors, investment advisers, or other professionals registered or otherwise authorized to provide such advice. KEDM makes no recommendations whatsoever regarding buying, selling, or holding a specified security, a class of securities, or the securities of a class of issuers, and all commentary is for educational purposes only. The investment examples noted are intended to provide and example of the events and data KEDM flags each week and is not representative of typical returns generated by each event or any future returns.