GSK or BHC, anyone?

Anyone looked at or looking at Bausch + Lomb or GlaxoSmithKline?

This is more in line with Jim’s Special Situation days than it is thrifts, of course, but both these look like something to look into, until they don’t.

• Bausch Health Co (BHC) is going to IPO 20% of Bausch + Lomb (future symbol BLCO?) and then spin the last 80% to its shareholders. No ratios known yet but there’s about 359MM shareholders in BHC right now; the S-1 has decent FCF figures in it for the past several years and even if you cut those for some cost of being independent, I think you get a sizable chunk of BHC tied up in “Future BLCO”… problem is, it seems to me that BLCO is the prize in BHC, so that part’s going to separate probably close to full value and not get sold off? (No dividend-yields forthcoming anywhere in this, afaik.) So I’m thinking BHC is the castoff by shareholders, and I have ‘not much’ for a value on that piece right now. There’s a 3rd little piece that will IPO from BHC eventually, too, and no timeline for that is certain. Before, after, during the other split, who knows?

Anyway, anybody looked at BHC, yet?

Moving on:

GlaxoSmithKline is trying to offload its Consumer Division, for which it declined a ~$70B ($50B GBP) offer this weekend by Unilever. It stated it is committed to spinning it off to shareholders, as a result of the unattractive offer from Unilever.

Pfizer owns 32% of this division in a JV with GSK, and Pfizer’s books have the PFE portion at $16.7B USD as an equity-method investment.… See p14-15 in the most recent 10-Q; looks like $1.4B of earnings in 2020/2021 which should be covid-reduced years? But this looks to be the entire JV earnings, so how can GSK want a 50 p/e on that for a sale… ?? I’m missing something here, and I’m hoping someone can point it out to me.


BHC!!! So many emotions…

I have been selling puts lately on BHC to good profits basically for the reasons you have given. Haven’t looked into GSK.

Short $26 put on expiring 1/21.


Well, I must have jinxed that for you…

Ha ha. Yes, I think you did but if so you have taken the whole market down with it. It appears I may be getting some shares exercised to me at $26 this Friday. No worries. Longer term I think the split up of the stock will generate value and I will probably be selling calls next week.

Short BHC puts expiring 1/28