KEDM Lite Vol. 14

This week’s additions and highlights

1. SPIN-OFFS

• Corteva (CTVA US). Corteva recently confirmed the Q4 separation of Seeds (Vylor) and Crop Protection (New Corteva), with dis‑synergies cut to $50m. This in itself is an attractive catalyst given the different business dynamics. Seed volumes were boosted by timing shifts and strong North American demand, and Crop Protection outperformed on new products and tighter global supply. Corteva also raised 2026 royalty guidance, which is quite positive.
• Brazilian Rare Earths (BRE AU). Brazilian Rare Earths is spinning out its Amargosa bauxite‑gallium project into a new ASX‑listed company, Alurion Resources, letting BRE stay focused on rare earths. Amargosa is a 568 Mt resource with 98 Mt of high‑grade direct‑ship bauxite, a relatively simple low‑capex development path, and from what it looks like some strong economics (NPV8 US$630m, IRR 82%). BRE will retain a 17-18% stake. BRE has done tremendously well over the past year, and these spins are often interesting opportunities.
• Honeywell (HON US). It might be a good time to look at Honeywell, which recently corrected on rather poor results. The company is preparing to separate Aerospace, while also selling non-core businesses (last one is PSS to Brady for $1.4bn). Aerospace faced a tough Q1 on supply chain disruptions, ending a long streak of quarters with solid growth, though March was solid again. Aerospace will trade under HONA, with an investor day planned in June. Another interesting note, a reminder that Honeywell also owns a big stake in Quantinuum, a pretty interesting quantum bet which has filed for an IPO. NVDA participated in the latest funding round which was already up in double digit $bn, nice optionality.

  UPDATE (May 19, 2026) Busy and interesting times ahead for Honeywell. There’s an investor day scheduled for June 11, as well as an Aerospace (HONA) investor day on June 3 ahead of the spin. Honeywell also filed for the Quantinuum IPO, which is looking to be in the $20bn+ range, despite only $31m revenues in 2025. But hey, it has Quantum in the name. Jokes aside, plenty of action.

2. STRATEGIC ALTERNATIVES & REVIEWS

(Potential take-outs, asset sales, M&A, etc.)

• GoPro (GPRO US). GoPro announced a review of strategic alternatives after receiving unsolicited interest. The stock is bobbing at the lows with the company working hard for years to reduce debt and regain profitability. That has not been working out so well and given its still interesting and sticky hardware‑plus‑subscription environment, it (finally) might be time to sell…