Rich Howe

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So far Rich Howe has created 63 blog entries.

Stock Spin-off Case Study: Nuvectra – Microcap Spin-off Trading Below Net Cash

Stock Spin-off Case Study: Nuvectra - Microcap Spin-off Trading Below Net Cash Overview On March 13, 2016, Integer (NYSE: ITGR), formerly known as Greatbatch, Inc, spun off its neuromodulation business, Nuvectra Corporation (Nasdaq: NVTR). Integer’s core business was outsourced medical device manufacturing. Nuvectra, which was known as QiG Group, was a small money [...]

By |2018-10-17T17:14:03-04:00October 17th, 2018|Categories: Stock Spin-off Case Studies|Tags: |0 Comments

Spin-off Links – September 26, 2018

Stock Spin-off Links Premium Service In July, I launched a premium stock spin-off service.  For $29 per month, I cherry pick the most promising stock spin-off investments for your benefit. So far, I have two recommendations: First recommendation is a small cap spin-off in the real estate sector. My price target implies ~94% [...]

By |2018-09-26T11:31:07-04:00September 26th, 2018|Categories: Spin-off Links|0 Comments

Spin-off Links – August 29, 2018

Stock Spin-off Links Stock Spin-off Resources Just a heads-up, I recently published an updated stock spin-off resources page. I include a bunch of information including: A one page “What is a Spin-off?” guide Links to 11 stock spin-offs studies and articles (BCG, McKinsey, Credit Suisse, J.P. Morgan and many others) You can check [...]

By |2018-08-29T11:31:16-04:00August 29th, 2018|Categories: Spin-off Links|0 Comments

Spin-off Links – July 13, 2018

Stock Spin-off Links Premium Spin-offs In case you missed it, I recently launched a premium newsletter and my first recommendation. The stock is already up ~11% since I published my thesis, but plenty more upside remains. I’ve launched at the extremely affordable price of $29/month (less than a dollar per day) for a [...]

By |2018-07-13T10:54:13-04:00July 13th, 2018|Categories: Spin-off Links|0 Comments

Spin-off Links – June 1, 2018

Stock Spin-off Links Recent Spin-offs There have been a ton of recent spin-offs this week. Yesterday, CorePoint Lodging (CPLG), a La Quinta (LQ) spin-off, began trading. LQ had run up after it was profiled recently at the Sohn Contest and it looks like the thesis has already played out as the spin-off, CPLG, [...]

By |2018-06-01T18:50:48-04:00June 1st, 2018|Categories: Spin-off Links|0 Comments

Spin-off Links – May 18, 2018

Imminent Spin-offs La Quinta’s (LQ) spin-off, CorePoint (CPLG), will begin trading on May 31, 2018. Additional information here, here, here, and here. Euroseas’s (ESEA) spin-off, Eurodry, will begin trading on June 1, 2018. Additional information here. DXC Technology’s (DXC) spin-off, Perspecta (PRSP), will begin trading on June 1, 2018. Additional information here. Spirit Realty Capital’s (SRC) spin-off, Spirit MTA REIT (SMTA), will begin trading on June 1, [...]

By |2018-06-01T18:41:18-04:00May 18th, 2018|Categories: Spin-off Links|0 Comments

Spin-off Links – May 10, 2018

Recent Spin-offs On Tuesday, May 1, nVent (NVT) began trading on the NYSE.  It opened at $21 and but rallied and is currently trading in the $25 range. So much for indiscriminate selling! I think its fairly valued at current levels and wouldn’t be a buyer unless there was significant sell off. To view [...]

By |2018-06-01T18:44:03-04:00May 10th, 2018|Categories: Spin-off Links|2 Comments

Dover Spin-off (APY) to Begin Trading Tomorrow

Background Dover (DOV) announced in September 2017 that it was reviewing strategic options (sell, merge, or spin-off) for its energy business. A month later, activist investor, Dan Loeb, disclosed his DOV position and urged management to sell its energy business. Loeb noted, “Removing the cyclicality from Dover will greatly reduce earnings volatility, allowing investors to [...]

By |2018-07-02T19:42:47-04:00May 8th, 2018|Categories: Spin-off Analysis|Tags: |0 Comments

NVT Analysis Ahead of Regular-way Trading

Background nVent Electric (NVT), a spin-off from Pentair (PNR) will begin trading tomorrow. NVT provides products and solutions that connect and protect electric equipment which improves the equipment’s utilization, lowers costs, and minimizes downtime. On a proforma basis, NVT generated $2.1BN in revenue and $440MM in EBITDA in 2017. In the when-issued market, NVT has [...]

By |2018-07-02T19:48:22-04:00May 1st, 2018|Categories: Spin-off Analysis|0 Comments

Latest Thoughts on APVO and AFI

As a follow up to my last post, I wanted to share my latest thoughts on APVO and AFI. Aptevo Therapeutics (APVO) APVO has been on quite a roller coaster. I originally recommended the stock in September 2016 at $2.79 after it had declined ~35% from its opening price. Check out my original write up [...]

By |2018-04-27T18:56:58-04:00April 23rd, 2018|Categories: Stock Write-ups|Tags: |0 Comments

Updated Thoughts on LSYN and NVTR

Liberated Syndication (LSYN) I closed out this recommendation earlier in April 2018 at a price of $1.57 (closing price today was $1.60). From the time of my initial recommendation in December 2016, LSYN’s stock price increased 257% from $0.44 to $1.57. For full details on why I’m closing out my recommendation, see my recent post: [...]

By |2018-05-10T14:35:05-04:00April 18th, 2018|Categories: Stock Write-ups|Tags: , |0 Comments

LSYN – Closing Out Position with 257% Gain

Since our initial recommendation of Liberated Syndication (LSYN) in December 2016, the stock has increased from $0.44 to $1.57 (as of April 3, 2018) for a 257% return. We are closing out our BUY recommendation as we believe the stock is fairly valued and better risk-reward opportunity can be found elsewhere. This isn’t an urgent [...]

By |2018-04-28T10:54:28-04:00April 3rd, 2018|Categories: Stock Write-ups|Tags: |0 Comments

Superinvestors and Stock Spin-offs

(This article was originally published in February 2016, but I wanted to update it to add Warren Buffett and Mohnish Pabrai’s perspective on 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 [...]

By |2018-08-08T16:22:51-04:00March 11th, 2018|Categories: Spin-off Market|20 Comments

Spin-off 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 |2018-04-28T11:19:38-04:00October 1st, 2017|Categories: Spin-off Links, Uncategorized|1 Comment

Spin-off 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 |2018-04-28T11:19:57-04:00August 17th, 2017|Categories: Spin-off Links|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 |2018-04-28T10:58:18-04:00May 21st, 2017|Categories: Spin-off Market|21 Comments

Spin-off 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 |2018-04-28T11:20:16-04:00December 23rd, 2016|Categories: Spin-off Links|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 |2018-04-28T10:54:59-04:00December 12th, 2016|Categories: Stock Write-ups|Tags: |4 Comments

Spin-off 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 cars.com which [...]

By |2018-04-28T11:21:19-04:00December 4th, 2016|Categories: Spin-off Links|0 Comments

Nuvectra Spinoff – Updated Thoughts

For background on the Nuvectra investment, please refer to my original investment case here: https://stockspinoffinvesting.com/micrcap-stock-spinoff-trading-below-book-value/ Additionally, there is a very good Value Investor Club write up here: https://www.valueinvestorsclub.com/idea/NUVECTRA_CORP/138336#description   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 |2018-04-28T10:52:51-04:00November 27th, 2016|Categories: Stock Write-ups, Uncategorized|Tags: |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: https://stockspinoffinvesting.com/armstrong-flooring-stock-spinoff-with-138-upside/ 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 |2018-04-28T11:21:43-04:00November 21st, 2016|Categories: Stock Write-ups|Tags: |0 Comments

Aptevo – Additional Thoughts

For the full investment case on APVO, please refer to my original write-up: https://stockspinoffinvesting.com/aptevo-therapeutics-an-orphaned-spinoff/ 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 |2018-04-28T11:33:27-04:00November 13th, 2016|Categories: Stock Write-ups|Tags: |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 |2018-04-28T11:33:43-04:00October 29th, 2016|Categories: Spin-off Analysis|Tags: |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 |2018-04-28T11:33:55-04:00September 26th, 2016|Categories: Stock Write-ups|Tags: |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 |2018-04-28T11:34:43-04:00August 21st, 2016|Categories: Spin-off Analysis|Tags: |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. https://stockspinoffinvesting.com/stock-spinoff-performance-by-market-cap/ 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 |2018-04-28T11:34:55-04:00May 23rd, 2016|Categories: Stock Write-ups|Tags: |3 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 |2018-04-28T12:07:13-04:00April 11th, 2016|Categories: Stock Write-ups|Tags: |4 Comments