Eight Diamonds Advisors
Special situations, event-driven, contrarian, research analyst

TimkenSteel: Trying To 'Steel' The Limelight, But Appears Fully Valued


The Timken Company (NYSE:TKR) announced in September 2013 that it planned to separate its steel business, TimkenSteel Corporation (NYSE:TMST), in a tax-free spin-off to its shareholders. At the close of business on June 30, 2014, TKR's shareholders received one common share of TMST for every two common shares of TKR they held at the close of business on June 23, 2014. TKR did not retain any ownership interest in TMST after the spin-off.

TMST creates tailored steel products and provides services for demanding applications. It operates from six countries and, based on its recent share price, has a market capitalization of around USD2.0 billion.

Our assessment of TMST's investment thesis

In its June 19, 2014 ...

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