Stock Spinoff Investing Guy

>Stock Spinoff Investing Guy

About Stock Spinoff Investing Guy

This author has not yet filled in any details.
So far Stock Spinoff Investing Guy has created 19 blog entries.

Spinoff Links – October 1, 2017

Here are the links I’m following in the stock spinoff and beyond world: Hamilton Beach Spinoff - Nacco Industries (Ticker: NC) spinoff Hamilton Beach (Ticker: HBB) began regular way trading on Friday, September 29th. Clark Street Value did a great job summarizing the situation. Check out his work here. Delphi: Analyzing the Upcoming Spin-off- Very [...]

By |October 1st, 2017|Uncategorized|1 Comment

Spinoff Links – August 17, 2017

Investing in Special Situations Podcast Episode – This is an episode from the Planet Microcap. The host interviews Mark Vanderwell, a full time special situations investor and member of Micro Cap Club. Mark dives into spinoffs, rights offerings, and other special situations. I found Mark’s insights into rights offerings super interesting/helpful. Nuvectra Written up on [...]

By |August 17th, 2017|Uncategorized|0 Comments

Stock Spinoffs and Indiscriminate Selling

A reader of blog recently asked me the following question: “Is there a way to tell when the initial selling pressure has ceased by looking at volume or something? How long does it typically take?” This is a great question, and I apologize that it took me so long to answer. At the heart of [...]

By |May 21st, 2017|Uncategorized|19 Comments

Superinvestors and Stock Spinoffs: What Munger, Klarman, Greenblatt and Lynch Have to Say about Investing in Spinoffs

I’ve known for a while that many of the world’s Superinvestors advocate investing in spinoffs. After all, that’s one of the reasons why I originally became interested in researching spinoffs. While there are many, relatively brief articles around the internet that summarize what Greenblatt, Munger and other Superinvestors have said about spinoffs, I struggled to [...]

By |February 13th, 2017|Uncategorized|15 Comments

Spinoff Links – December 23, 2016

Versum Materials Spinoff – Versum (VSM) is the recent spinoff of APD, VSM focuses on specialty gases, specialty chemicals, and services and equipment to the electronics industry. There has been some insider buying of late which is always good to see. However, I don’t think the stock looks that interesting. First of all, it trades [...]

By |December 23rd, 2016|Uncategorized|7 Comments

Liberated Syndication Spinoff

We have spent eight months following and researching the spinoff of Liberated Syndication. Here is the investment case in a nutshell: Liberated Syndication (Ticker: LSYN) is microcap software-as-a-service (SAAS) business with recurring revenue growing 25%+ annually trading at 3.1x earnings. LSYN is a pure play on continued secular growth of the podcasting industry. Sounds pretty [...]

By |December 12th, 2016|Uncategorized|4 Comments

Spinoff Links – December 4, 2016

Hilton Spinoff - Clark Street Value does a nice job summarizing the Hilton Spinoff. At this point, he doesn’t see upside in shares, but his estimate of the expected value of each division is super helpful ahead of the split. TGNA Spinoff - Very interesting Seeking Alpha article on Tegna’s proposed spinoff of which [...]

By |December 4th, 2016|Uncategorized|0 Comments

Nuvectra Spinoff – Updated Thoughts

For background on the Nuvectra investment, please refer to my original investment case here: Additionally, there is a very good Value Investor Club write up here:   Short Background Nuvectra is a neuromodulation platform that was spun out of Greatbatch earlier this year. Nuvectra currently has a market cap of ~$60mm and net [...]

By |November 27th, 2016|Uncategorized|5 Comments

Armstrong Flooring Reports Q3 Results

Last week, Armstrong Flooring  (AFI) reported third quarter results. For background information on the company, refer to my earlier post: My original investment case for AFI in a nutshell is as follows.  AFI sells flooring material which is benefiting from a strong US housing market. While the flooring market has rebounded, it remains 30% [...]

By |November 21st, 2016|Uncategorized|0 Comments

Aptevo – Additional Thoughts

For the full investment case on APVO, please refer to my original write-up: In this post, I wanted to share a few thoughts on APVO's current portfolio of commercial products and then its pipeline. Current Commercial Products I view the current portfolio of approved products in two buckets. Bucket 1: the legacy products. Bucket 2: [...]

By |November 13th, 2016|Uncategorized|2 Comments

Lamb Weston Spinoff

ConAgra is spinning off Lamb Weston Holdings, its frozen potato business (think french fries). Joe Cornell did a nice job summarizing the pending spinoff in Forbes. The ticker will be LW and when issued trading will begin imminently. Regular way trading will begin on November 9th. ConAgra has been under pressure from Activist investors (Jana) [...]

By |October 29th, 2016|Uncategorized|0 Comments

Aptevo Therapeutics: An Orphaned Spinoff

Aptevo (APVO) is a recent spinoff from Emergent Biosolutions (EBS), an underfollowed biodefense company. For reasons described below, Aptevo was sold indiscriminately and is currently trading well below any reasonable estimate of fair value. Reason for the Spinoff EBS is a specialty pharmaceutical company that is focused on creating biodefense drugs for civilian and military [...]

By |September 26th, 2016|Uncategorized|3 Comments

Lessons Learned Investing in Quorum Health

After doing some work on QHC, I bought the stock based on the thesis that I outline below. Unfortunately, last week QHC reported a VERY DISAPPOINTING quarter the stock dropped by roughly 50%. I’ve sold out of the stock and cut my losses. The purpose of this post is to review my thesis and evaluate [...]

By |August 21st, 2016|Uncategorized|4 Comments

Armstrong Flooring: Spinoff with +138% upside

I was first attracted to AFI because it’s a small cap spinoff, and small cap spinoffs tend to outperform the market and outperform other spinoffs, as I’ve noted in prior write-ups. After reviewing AFI’s form 10, AFI’s analyst presentation, and the flooring sector, I’ve concluded that AFI has limited downside and the potential to [...]

By |May 23rd, 2016|Uncategorized|3 Comments

Armstrong Flooring: Stock Spinoff with 100%+ Upside

Take a look at Armstrong Flooring. Ticker is AFI. I'm working on a full write up, but here's the short pitch. AFI sells flooring material which is benefiting from a strong housing market. AFI was spun out of Armstrong as it was underperforming with revenue and EBITDA flat to down over the past three years. Management [...]

By |May 15th, 2016|Uncategorized|0 Comments

Nuvectra: Microcap Stock Spinoff Trading Below Book Value

Nuvectra (Ticker: NVTR) first piqued my interest because it is a microcap spinoff and microcap spinoffs generate huge returns in year one. See the chart below: However, you have to be extremely careful investing in spinoffs and especially microcap spinoffs.  While the average performance is extremely attractive, there is huge dispersion in returns. As an [...]

By |April 11th, 2016|Uncategorized|4 Comments

Stock Spinoff Performance by Market Cap

I wanted to share a quick stock spinoff analysis. I downloaded all the stock spinoff data that was available on Bloomberg and then analyzed total 1 year return, 3 year return and 5 year return, by market capitalization. Here is one key takeaway: microcap spinoffs outperform in year 1.  Specifically, “Less than $500mm Market Cap Spinoffs,” [...]

By |March 21st, 2016|Uncategorized|2 Comments

What is a Stock Spinoff?

A stock spinoff occurs when a publicly traded company splits into two companies. Let’s walk through an example to see what that really means:   Example: ConocoPhillips Spinning off Phillips 66   In 2011, ConocoPhillips announced that it would be splitting its company in two. The parent company would continue to own the upstream assets [...]

By |February 29th, 2016|Uncategorized|0 Comments

How to Find Stock Spinoffs

As the chart above shows, stock spinoffs can be a fertile area to find profitable investment ideas. Joel Greenblatt, founder of Gotham Capital, would agree. In “You Can Be a Stock Market Genius” he writes: “You can make a pile of money investing in spinoffs.  The facts are overwhelming. Stocks of spinoff companies significantly and [...]

By |February 18th, 2016|Uncategorized|0 Comments