Rich Howe

About Rich Howe

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So far Rich Howe has created 143 blog entries.

Off to Omaha

Off to Omaha I generally hate to travel for work. It’s exhausting, and I miss my kids. It also puts 100% of the child care burden on my lovely wife. So I generally don’t travel. But occasionally, I make an exception. This week is one of those exceptions. And I couldn’t be more excited. Tomorrow [...]

By |2024-05-01T09:54:29-04:00May 1st, 2024|Categories: Spin-off Market|0 Comments

Turo: The Next Airbnb?

Turo: The Next Airbnb? One of my favorite stocks is IAC Inc (IAC). It’s a holding company with many different ownership stakes. To value IAC, you need to do a sum-of-the-parts analysis (SOTP). Investment cases built on SOTP valuations are tricky because you don’t know when/if value will ever be unlocked. As such, they can [...]

By |2024-04-25T08:43:09-04:00April 24th, 2024|Categories: blog, Educational|Tags: , |1 Comment

What will happen to Atmus Filtration (ATMU) after the exchange concludes?

What will happen to Atmus Filtration (ATMU) after the exchange concludes? One situation that I’m closely following is Cummin’s (CMI) spin off of Atmus Filtration (ATMU). The situation is/was a fun one to watch because there was an “odd lot” arbitrage. In a nutshell, there was an opportunity to make a low risk $2k. The [...]

By |2024-03-14T09:18:29-04:00March 13th, 2024|Categories: Spin-off Market|Tags: , |3 Comments

Spin-off Mailbag: How do you get in touch with Investor Relations

Spin-off Mailbag: How do you get in touch with Investor Relations? One of the reasons that I love investing in small and micro-cap companies is that generally it’s easy to get in touch with management and/or investor relations. But sometimes, investor relations is hard to track down. Today, I’m going to walk through the specific [...]

By |2024-01-09T16:16:05-05:00January 8th, 2024|Categories: Spin-off Market|2 Comments

A “SOTP” Horror Story

A “SOTP” Horror Story Sum-of-the-part or SOTP analysis is a key tool that I use when analyzing a spin-off. Most conglomerates trade at a “conglomerate discount” and so SOTP analysis can be useful to understand if a spin-off will create value. However, SOTP analysis cannot be followed blindly. I just published a case study on [...]

By |2023-12-05T17:15:38-05:00December 5th, 2023|Categories: Case Study, Educational|2 Comments

Spin-off Mailbag: Why Don’t Investors Short All Spin-Offs?

Spin-off Mailbag: Why Don’t Investors Short All Spin-Offs? I got a great question in my Twitter DMs related to shorting spin-offs.... Here's my answer: First, it’s hard to short spin-offs right when they come out. Typically, no shares are available to borrow from my broker (Schwab) so shorting is challenging (maybe some brokers are better?). [...]

By |2023-10-29T08:01:56-04:00October 29th, 2023|Categories: Spin-off Market|3 Comments

Spin-off Calendar

Spin-off Calendar Danaher (DHR) spun off Veralto Corporation (VLTO) on September 30. You can read my deep dive on Veralto here (paywall) Aramark (ARMK) spun off its uniform services business, Vestis (VSTS) on Sept 29. You can read my deep dive on Vestis here (paywall) On October 2, 2023, Kellogg (K) spun off WK Kellogg (KLG) in a tax-free transaction. You can read my notes here. On October 4, Novartis (NVS) spun off Sandoz [...]

By |2023-10-12T11:53:40-04:00October 12th, 2023|Categories: Spin-off Market|Tags: |0 Comments

Spin-off Links – October 2023

Spin-off Links - October 2023 There has been a TON of spin-off activity. Let’s get right into it…. New Spin-off Announcements On September 21, 2023, W. P. Carey (WPC) announced that it will exit the office assets within its portfolio. It will sell 87 office properties and put another 59 into a new company which [...]

By |2023-10-05T12:12:59-04:00October 5th, 2023|Categories: Spin-off Links|Tags: , , , , , , |1 Comment

Seth Klarman Special Situations Investing Case Study

Seth Klarman Special Situations Investing Case Study Seth Klarman, famous value investor and CEO of Baupost Group, was recently interviewed on the “Capital Allocators” podcast. It was a terrific interview, and I recommend listening to the full conversation. Today, I want to highlight a case study that Klarman walked through. I LOVE case studies. [...]

By |2023-09-12T16:20:26-04:00September 12th, 2023|Categories: Case Study, Educational|0 Comments

Talking Spin-offs with Schroders The Value Perspective

Talking Spin-offs with Schroders The Value Perspective I recently had the opportunity to talk spin-offs with Juan Torres Rodriguez, host of The Value Perspective. I had a blast! Here's what we covered: 3:02: My Background 7:28: What is Special Situation Investing? 11:38: What are the main challenges of investing in special situations? 15:24: Special [...]

By |2023-08-07T17:06:15-04:00August 7th, 2023|Categories: Interview, Spin-off Market|0 Comments

3 Biases to Avoid as a Special Situations Investor

3 Biases to Avoid as a Special Situations Investor I was recently interviewed for a podcast, and the host asked me about behavioral biases. Specifically, the host asked: What are the behavioral biases most commonly found around special situation investing? For me, the 3 most relevant biases are: Disposition Effect Overconfidence Effect. Consistency Bias. Today, [...]

By |2023-06-23T16:49:20-04:00June 23rd, 2023|Categories: Educational|0 Comments

Joel Greenblatt Podcast Interview

Joel Greenblatt Podcast Joel Greenblatt is my favorite investor. He specializes in special situations and generated 50% annual returns for a decade. Whenever he’s interviewed, I drop everything and listen in. Greenblatt was recently interviewed on the Investor’s Chronicles podcast. The whole interview is interesting, but my favorite section was towards the end when the [...]

By |2023-06-04T12:57:10-04:00June 4th, 2023|Categories: Joel Greenblatt, Spin-off Market|0 Comments

Spin-offs Links – May 2023

Spin-offs Links - May 2023 It’s been a busy five months in the spin-off world. Let’s get right into it…. Recently Announced Spin-offs On May 18, 2023, Alibaba (BABA) announced that it will be spinning off its Cloud Intelligence Group in the next 12 months. This follows the company’s March 28 announcement of a large [...]

By |2023-05-26T16:32:54-04:00May 26th, 2023|Categories: Spin-off Links|Tags: , , , , , , , , , , |0 Comments

5 Ways That I Use BamSEC

5 Ways That I Use BamSEC One of my favorite investing tools out there is BamSEC. Here are the 5 ways that I use it: 1) Let's start with spin-offs.... Months before it starts trading, a spin-off will file a Form 10 with all its historical financial information. A Form 10 is similar to a [...]

By |2023-05-18T16:54:57-04:00May 18th, 2023|Categories: Educational, Investing Tools|1 Comment

Updated Spin-off Calendar

Updated Spin-off Calendar Star Holding (STHO) was spun off of iStar (STAR) on Friday, March 31.  You can read my thoughts here. Imminent Spin-offs: 1) Crane Co (CR) will be spun off from Crane NXT on Monday, April 3. You can read my notes here. 2) Madison Square Garden Entertainment (MSGE) will spin off Sphere Entertainment Co (SPHR) on April 20. You can read my notes here. Want a printable spin-off calendar? Here you go: Upcoming Spin-off Calendar  [...]

By |2023-04-03T15:10:09-04:00April 3rd, 2023|Categories: Spin-off Market|Tags: , , , , |0 Comments

Warren Buffett and Spin-offs

Warren Buffett and Spin-offs  Warren Buffett, the world’s greatest investor, has a complicated history with spin-offs. On the one hand, he’s made a lot of money investing in them. But he would never spin off a Berkshire subsidiary unless forced to by regulators. And I have to say, I agree with his seemingly contradictory [...]

By |2023-03-18T10:01:47-04:00March 18th, 2023|Categories: blog, Educational, Warren Buffett|0 Comments

Spin-offs with Insider Buying (March 2023)

Spin-offs with Insider Buying (March 2022) I recently scanned my spin-off / special sits watch list for insider buying and found 7 stocks that are worth highlighting. Let’s go in alphabetical order… Altisource (ASPS) Altisource is an old 2009 spin-off. For a period of time, it was one of the best performing spin-offs of [...]

By |2023-04-07T14:24:29-04:00March 10th, 2023|Categories: Spin-off Market|0 Comments

Talking Spin-offs with Value Investor Chatter

Talking Spin-offs with Value Investor Chatter Last week, I had the opportunity to talk spin-offs with Beko Jang on the Value Investor Chatter Podcast. Here's what we covered: 5:01: Exploring the Benefits of Spin-off Investing 8:10: Forced Selling in Spin-offs 16:07: Analyzing Management Incentives 19:20: The Most Important Factors to Consider When Considering Investing [...]

By |2023-03-10T08:45:31-05:00March 6th, 2023|Categories: Interview, Spin-off Market|0 Comments

How to Invest in Biotech (without being a specialist)

How to Invest in Biotech (without being a specialist) I know many investors who don’t invest in certain sectors because they require specialized expertise. A few of the most common examples: Financials Energy Biotech And there is definitely something to be said for staying within your circle of competence. But for better or worse, [...]

By |2023-03-06T10:48:53-05:00February 22nd, 2023|Categories: Educational, Stock Spin-off Case Studies|2 Comments

Spin-off Links – February 2023

Spin-off Links - February 2023 Lot’s going on in the spin-off world. Let’s get right into it… Recently Announced Spin-offs Baxter (BAX) announced on January 6 that it plans to spin off its Renal Care and Acute Therapies global business units into an independent company within 12-18 months. Here’s Baxter’s slide deck with additional [...]

By |2023-02-08T22:06:12-05:00February 8th, 2023|Categories: Spin-off Links|Tags: , , , , , , , , , , |0 Comments

[Podcast] Stock Spin-off Investing for Beginners

[Podcast] Stock Spin-off Investing for Beginners I recently had the opportunity to talk with the guys from The Investing for Beginners Podcast. It was a blast! Here's what we covered: ·      How would Rich explain what a spinoff is, and how they work? ·      Are there certain cycles or market cycles better for spinoffs? ·      How do companies [...]

By |2022-11-29T10:26:20-05:00November 29th, 2022|Categories: Interview|0 Comments

Spin-offs with Insider Buying (November 2022)

Spin-offs with Insider Buying (November 2022) I recently scanned my spin-off watch list for insider buying and found 4 stocks that are worth highlighting. Let’s go in alphabetical order… Conduent (CNDT) Conduent is a business processes outsourcing company that was spun off from Xerox in 2016. It hasn’t had much success as a public company… [...]

By |2022-11-16T12:25:05-05:00November 16th, 2022|Categories: Spin-offs with Insider Buying|Tags: , , , |2 Comments

Spin-off Links – October 2022

Spin-off Links - October 2022 There has been a TON of spin-off activity. And valuations generally look quite attractive. I don’t know when the bear market will end, but I do know I’m seeing a ton of value from a bottom up perspective. Before we get into the spin-off news, I want to share some [...]

By |2022-10-26T11:39:33-04:00October 26th, 2022|Categories: Spin-off Links|Tags: , , , , , , , , |0 Comments

Market Champions Podcast

Market Champions Podcast I recently had the opportunity to speak with Srivatsan Prakash on his podcast. Fun fact about Srivatsan: He's been podcasting since 2019 but is only 18!! Fun fact #2: He convinced Jim Rogers (as in the business partner to George Soros) to come on his podcast. It was a ton [...]

By |2022-09-13T17:46:24-04:00September 13th, 2022|Categories: Interview, Uncategorized|0 Comments

10 Rules for Spin-off Success

10 Rules for Spin-off Success I've been investing in spin-offs for the past 15 years and have learned many lessons. How'd I learn them? Mainly, the hard way! But today I'm sharing those lessons so you don't have to make the same mistakes. #1. Forget that “spin-offs outperform”  In aggregate, they generally will but [...]

By |2022-07-08T11:37:52-04:00July 7th, 2022|Categories: Educational|Tags: , , , , , , |0 Comments

Buffett On Inflation Over The Last 50 Years

Buffett On Inflation Over The Last 50 Years There have been four key times when Warren Buffett has given his insights on inflation in Berkshire Hathaway's annual reports since the 70s. 1979 - After explaining that Berkshire’s book value compounded 20.5% annually for the previous 15 years, Buffett comments: “But before we drown in [...]

By |2022-06-22T11:34:31-04:00June 22nd, 2022|Categories: Educational|0 Comments
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