Daily Brief United States: Ligand Pharmaceuticals, Arcadium Lithium , Trimas Corp, Arrow Electronics, PetroTal, Sila Realty Trust Inc, JAKKS Pacific , Seaboard Corp, Theravance Biopharma and more

• Ligand Pharmaceuticals holds a portfolio of revenue, royalty and milestone generating assets that have been vetted by its internal investment team.
• Ligand considers individual biopharmaceutical products, platforms, companies & income streams in its opportunity set.
• It targets late-stage and commercial income-producing assets when making investments.

• On October 9, Rio Tinto agreed to acquire Arcadium Lithium through a Jersey scheme of arrangement for $5.85/share, a 90% premium, valuing Arcadium’s diluted share capital at $6.7 billion.
• As of October 4, Arcadium shares on the NYSE had fallen by approximately 54.1% since listing. Rio Tinto is taking advantage of low lithium prices to acquire high-quality lithium assets.
• The offer price is generous: 17.3x 25e EBITDA vs. closest comparable Albemarle Corp (ALB US) at 12.2x 25e EBITDA. Gross spread is 5.1%. I set my PT at $5.85. Long.

• TRS has three operating segments where the smallest has already been going through a sales restructuring period and we are now expecting a slowdown in TRS’s aerospace business.  
• Aerospace had been growing at double-digit rates in recent years, but in recent months the two largest aerospace customers have been going through their own ordeals
• TRS’s current valuation gives little value for what each segment could be worth. There have been two aerospace IPOs with similar businesses to TRS’s aerospace business. 

• Arrow distributes semiconductors, electronic components, and IT hardware/software to value-added resellers globally
• With 600 suppliers and 210,000 customers, Arrow simplifies the supply chain process for both parties
• Focus on cheap electronic components with some high-value semiconductors like GPUs; plays a crucial role in aggregating customer demand

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• 3Q24 production was 15,160 bbl/d. This is well above expectations of 13 mbbl/d.
• While the river levels were at record lows, PetroTal has maximized the barge fleet capacity during the quarter.
• Production during the first week of October was 10.7 mbbl/d. With the end of the dry season in sight, production is expected to return to capacity by mid-November, 

• Sila Realty Trust is a healthcare real estate investment trust focused on medical office buildings
• Despite high-quality portfolio and low debt levels, Sila’s stock is undervalued
• Potential buying opportunity with strong lease profile and attractive valuation, especially if interest rates rise

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• We are reiterating our Buy rating, projections and $30 price target for JAKKS Pacific after meeting with management and viewing the company’s product offerings.
• We believe momentum has remained strong at JAKKS Pacific, driven by strong sales of core items, expansion into new categories/licenses and continued excitement over the upcoming Holiday movie slate.
• Further, with JAKKS now net cash positive, the company is well positioned to strategically expand and potentially return capital to shareholders.

• Seaboard Corporation is an agribusiness conglomerate owned by the Bresky family for over a century
• Recent downturn in operating income due to losses in pork business, but historically maintained 11% ROE
• Stock price of $3,062 trades at low 0.64x book value, potential for 100% return if company achieves 8% ROE in next three years and returns to historical book value ratio of 1.2x

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• TBPH prioritizes shareholder value and is trading at a discount to its NAV
• The company is an attractive investment opportunity for value investors
• TBPH has a strong focus on maximizing shareholder value, valuable assets, and potential for significant upside

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.