Topic: How To Invest

Spinoffs, Takeovers & Special Situations Hotline – Friday, November 24, 2017

Article Excerpt

VISTA OUTDOOR INC., $14.14, symbol VSTO on New York, is a manufacturer of consumer products for the outdoor sports and recreation markets. Its brands include Federal Premium ammunition, Savage rifles, Bushnell binoculars and riflescopes, and Bell and Giro cycling helmets. Vista Outdoor was spun off from Alliant Techsystems Inc.’s (formerly New York symbol ATK) sporting group in February 2015. Shareholders of Alliant Techsystems received two VSTO shares for every share of ATK they held. Alliant Techsystems’ aerospace and defense groups were then merged into Orbital Sciences Corporation and the merged entity was renamed Orbital ATK Inc. It trades under New York symbol OA. Since the middle of 2016, Vista Outdoor’s stock has dropped from $50 to today’s price. In the fiscal second quarter ended October 1, 2017, revenue fell 14.2%, to $587.3 million, from $684.3 million. Sales declined for both the company’s outdoor products and its shooting sports segment as a result of lower demand and a challenging retail environment. That includes retail chain…