KEDM Lite Vol. 12
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
- Textron (TXT US). Generally, it is too large for a KEDM Lite flag, but there’s just so much going on a Textron. They recently announced to be looking to spin the industrials arm and reposition as a pure‑play defense company. Obviously strong tailwinds. A reminder that Textron is a key supplier for military helicopters. And Director Thomas recently bought shares; this is the former Raytheon CEO. ~10x forward EV/EBITDA is not much.
- Hexagon AB (HEXAB SS). Hexagon provided additional financial and organizational information for its upcoming Octave spin-off. The unit’s results have been under pressure over H1 25 but sported >30% ebit margins in 2024 and 27% in H1 25. Let’s hope for some interesting action after the spin. UPDATE (February 17, 2026) The spin is now planned for the second part of Q2. Hexagon also provided more financial info on Octave. UPDATE (March 3, 2026) Hexagon completed the sale of its Design and Engineering business, for c. €1.4bn in net proceeds. But the main interesting development here is on Octave, which is planned to spin in Q2. Octave seems to be working hard to position itself as an AI intelligence company. That, combined with Octave generating ~25% operating margins on very recurring revenues and a US listing, might make for an interesting set-up.UPDATE (May 5, 2026) Hexagon held a capital markets day, providing ao more on the upcoming Octave spin, and it’s worth a look. Distribution is now set for May 22. Ticker OCTV on Nasdaq.
2. STRATEGIC ALTERNATIVES & REVIEWS
(Potential take-outs, asset sales, M&A, etc.)
- Integer (ITGR US). CDMO Integer announced a review of strategic alternatives, mentioning to have received “significant interest”. The shares have somewhat recovered since the massive price correction on poor earnings. The company claimed the reduced guidance is due to temporary headwinds which will subside over next year, with strong medium-term growth planned (a lot already contracted). We flagged this one a few months ago on the (new) CEO buying the dip. More to come.
- American Hotel Income Properties REIT (HOT-U CT). American Hotel announced a review of strategic alternatives. The company has quite a debt burden, and with maturities coming up and rates increasing, it has been selling assets to pay down debt. But asset prices have been decent. Trading at ~0.4 BV…
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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.