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 [...]
June 2018
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 [...]
May 2018
US Stock Spin-offs Continue to Outperform the Broader Market
Stock Spin-offs Continue to Outperform It has been a while since we've taken a look at the relative performance of the Bloomberg US Spin-off Index so we pulled the latest data today. As displayed [...]
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 [...]
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 [...]
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 [...]
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 [...]
April 2018
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 [...]
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 [...]
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 [...]
March 2018
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 [...]
October 2017
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 [...]
August 2017
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 [...]
May 2017
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?” [...]
December 2016
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 [...]
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%+ [...]
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 [...]
November 2016
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 [...]
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 [...]
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 [...]
October 2016
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 [...]
September 2016
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 [...]
August 2016
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 [...]
May 2016
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 [...]
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 [...]
April 2016
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 [...]
March 2016
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, [...]
February 2016
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 [...]
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: [...]