Rich Howe

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So far Rich Howe has created 120 blog entries.

[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

2seventy bio: A Double With Downside Protection

2seventy bio: A Double with Downside Protection The biotech market is in a bear market and it’s been that way for a while. XBI, the leading biotech ETF, is down 53% from its peak in 2020. What is even more interesting is that a record number of biotechs are trading at negative enterprise values. In [...]

By |2022-11-23T13:39:47-05:00November 23rd, 2022|Categories: Uncategorized|Tags: |1 Comment

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: , , , |7 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|1 Comment

Buy NexPoint Diversified (NXDT)

Buy NexPoint Diversified (NXDT) NexPoint Diversified REIT Investment Case June 15, 2022 Ticker: NXDT Price: $15.23 Market Cap: $565MM Price Target: $25 Upside: +64% Summary: NexPoint (NXDT) is a closed end fund that is transitioning into a real estate investment trust (REIT). It trades at a 40% discount to NAV and is significantly below where [...]

By |2022-06-15T16:26:32-04:00June 15th, 2022|Categories: Stock Write-ups|Tags: |1 Comment

Spin-off Links – June 2022

There has been a lot of spin-off news since my last “spin-off links” article… But before we dive into it I just want to highlight that I just published a new idea. Usually I look for obscure, hidden opportunities, but my latest recommendation is a large cap that is too cheap to ignore. It’s a [...]

By |2022-06-02T11:50:32-04:00June 2nd, 2022|Categories: Spin-off Links, Uncategorized|Tags: , , , , , , , , |0 Comments

How Peter Lynch Beat The Market

How Peter Lynch Beat The Market Peter Lynch is known as one of the best stock pickers of all time. At Fidelity’s Magellan Fund, he averaged an astonishing 27.9% return over the course of 13 years. He also was a notorious fan of spin-offs. Here's what Lynch looked for when picking stocks. Look for [...]

By |2022-05-03T10:03:44-04:00April 22nd, 2022|Categories: Educational, Peter Lynch|0 Comments

3 Biggest Takeaways From Joel Greenblatt‘s Special Situation Class

3 Biggest Takeaways From Joel Greenblatt‘s Special Situation Class Joel Greenblatt‘s Special Situation Classes at Columbia University are a great source for practical investment advice. Today, we‘ll take a look at what he learned from different Spin-Off situations he discussed in his class. 1. Complicated, Messy, Obscure Joel Greenblatt focuses on situations that seem to [...]

Capitalizing On Volatility In Recent Spin-Offs

Capitalizing On Volatility In Recent Spin-Offs Volatility is always high for recent spin-offs. You can take advantage of that by "selling volatility" in the options market. First, let's step back and cover how options are priced. Here's Joel Greenblatt: In general, professionals and academics calculate an option’s “correct” or theoretical price by first measuring the [...]

By |2022-04-07T15:45:02-04:00April 7th, 2022|Categories: Special Situations Playbook, Spin-off Market|Tags: |1 Comment

Dividend As A Catalyst

Dividend As A Catalyst One of my favorite spin-off strategies is the "dividend as a catalyst" trade. Here's how it works: Identify a spin-off that will be indiscriminately sold, determine the expected dividend yield, wait to buy until 30% of shares out have traded and the stock is trading at attractive implied dividend yield, sell [...]

By |2022-03-30T17:40:08-04:00March 30th, 2022|Categories: Special Situations Playbook, Spin-off Analysis, Stock Spin-off Case Studies|Tags: , |1 Comment

Tax Rate Arbitrage

Tax Rate Arbitrage One of my favorite new categories of special situations is "tax rate" arbitrage. Here's an example. Let's assume company XYZ is trading at $10 and will be paying a special dividend of $6. Buy XYZ for $10 and you must hold for 61 days (including date of div) for div to be [...]

By |2022-03-23T15:02:12-04:00March 23rd, 2022|Categories: Special Situations Playbook|Tags: |0 Comments

Spin-off Links – March 2022

Spin-off Links - March 2022 2022 spin-off activity is off to a strong start. But before we get into it, I just wanted to highlight that I published a deep dive of ZimmerBiomet (ZBH)’s recent spinal/dental spin-off, ZimVie (ZIMV) for premium subscribers. ZimVie Deep Dive In the coming weeks, I will publish deep dives on [...]

By |2022-03-23T13:25:40-04:00March 10th, 2022|Categories: Spin-off Links|Tags: , , , , |0 Comments

Spin-off Links – December 2021

Spin-off Links - December 2021 There has been a TON of spin-off activity. New spin-off announcements, recent spin-offs trading, upcoming spin-offs - you name it, we got it.. Let’s get into it. New Spin-off Announcements On November 12, 2021, Johnson & Johnson (JNJ) announced that it will spin-off its consumer business ($15BN of revenue) within [...]

By |2021-12-22T09:41:22-05:00December 22nd, 2021|Categories: Uncategorized|Tags: , , , , , , , |0 Comments

Spin-offs with Insider Buying – October 2021

Spin-offs with Insider Buying (October 2021) This week, we have a couple new names popping up on our list. Let’s dig right into them…. Apartment Investment & Management (AIV) I know I promised some new names, but we are going to start with AIV which has seen even more insider buying. Apartment Investment & Management [...]

By |2021-10-21T10:27:38-04:00October 21st, 2021|Categories: Spin-offs with Insider Buying|Tags: , , |0 Comments

How to Short a Spin-off Before It Begins Trading

How to Short a Spin-off Before It Begins Trading I love spin-offs (shocker, I know). The main reason is that the indiscriminate selling pressure associated with spin-offs allows me to buy bargains. Why do spin-offs sell off when they begin trading? Seth Klarman of the Baupost Group explains why this dynamic exists in Margin [...]

By |2021-10-06T17:43:19-04:00October 6th, 2021|Categories: Educational|Tags: , , , , |1 Comment

Spin-off Links – October 2021

Spin-off Links - October 2021 Before we get into this month’s spin-off news I just wanted to highlight that I will be raising prices on my premium newsletter at the end of the month (October 31 at midnight). The annual subscription will increase by 51% from $419/year to $635/year. The monthly subscription will increase by [...]

By |2021-10-06T12:10:11-04:00October 6th, 2021|Categories: Uncategorized|Tags: , , , , , , |0 Comments

Spin-offs with Insider Buying – September 2021

Spin-offs with Insider Buying (September 2021) In One Up on Wall Street, Peter Lynch wrote: [Spin-offs] are a fertile area for amateur investors…….A month or two after the spinoff is completed, you can check to see if there is heavy insider buying among the new officers and directors. This will confirm that they, too, believe [...]

By |2021-09-22T12:36:07-04:00September 22nd, 2021|Categories: Spin-off Links|Tags: , , , , , |0 Comments

Spin-off Links – August 2021

Spin-off Links - August 2021 Before we get into this month’s spin-off news I just wanted to highlight some research I did on Thungela Resources. It is a spin-off from Anglo American, and at first blush, looks unappealing. However, if you dig beneath the surface, it gets a lot more interesting. In short, it’s crazy [...]

By |2021-08-25T10:23:40-04:00August 25th, 2021|Categories: Spin-off Links|Tags: , , , |0 Comments

Thungela Resources: Buy the Toxic Waste

Thungela Resources: Buy the Toxic Waste About a month ago, I recommended that my premium subscribers buy Thungela Resources, a coal spin-off from Algo American. Since then, I’ve made it my largest personal investment, and it’s currently my highest conviction idea. The stock is up about 36% since my recommendation, but there is a lot [...]

By |2021-08-20T10:56:16-04:00August 20th, 2021|Categories: Stock Write-ups|Tags: |4 Comments

Spin-offs With Insider Buying – August 2021

Spin-offs with Insider Buying (August 2021) This month, we have a good amount of insider buying! Let’s go in alphabetical order. Armstrong Flooring (AFI) Armstrong Flooring is a name that I’ve followed for a while ever since it was spun out of Armstrong Worldwide. The company is in the midst of a turnaround. It recently [...]

By |2021-08-05T14:47:45-04:00August 5th, 2021|Categories: Uncategorized|Tags: , , , |0 Comments

Spin-off Links – June 2021

Spin-off Links - June 2021 The spin-off bonanza continues. As the global economy recovers, companies that had halted their spin-off plans are now moving forward with them. And new companies are announcing break up plans in the never ending quest to create value. As a result, we are staying super busy. While it’s hard to [...]

By |2021-06-30T05:46:39-04:00June 30th, 2021|Categories: Spin-off Links|Tags: , , , |0 Comments

Spin-off Links – May 2021

Spin-off Links - May 2021 New Spin-off Announcements AT&T Inc.(T) announced that it had reached a deal to spin off WarnerMedia (CNN, HBO, TNT, TBS, and Warner Bros. studio) and simultaneously merge it with Discovery Inc. (DISCA), creating a new publicly traded company. The move comes just three years after AT&T’s creation of WarnerMedia through [...]

By |2021-05-26T16:41:02-04:00May 26th, 2021|Categories: Spin-off Links|Tags: , , , , , , , , , , |0 Comments

Spin-offs with Insider Buying (May 2021)

Spin-offs with Insider Buying (May 2021) This month, we have three (two new names and one name we’ve highlighted before) spin-offs with notable insider buying. Let’s go in alphabetical order. Apartment Investment & Management (AIV) Late last year, Apartment Investment & Management (AIV), known as Aimco, spun off Apartment Income REIT (AIRC). At the time, [...]

By |2021-05-12T16:15:10-04:00May 12th, 2021|Categories: Spin-offs with Insider Buying|Tags: , , |2 Comments

Spin-off Links – April 2021

Spin-off Links - April 2021 Recently Announced Spin-offs Dell (DELL) announced last Wednesday that it plans to proceed with the spinoff of its 81% ownership of enterprise software maker, VMware, which it intends to complete in the fourth quarter of 2021. The announcement should not come as a surprise as the company said in July [...]

By |2021-04-21T11:12:20-04:00April 21st, 2021|Categories: Spin-off Links|Tags: , , , , , , , |1 Comment