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Chewy is 15% Overvalued

Chewy is 15% Overvalued Background A subscriber recently asked me what I thought of Chewy (CHWY) so I spent some time digging into it. It was a fun exercise in part because it’s the opposite of what I typically look for. First, it was a recent initial public offering (IPO). IPOs are propped up by [...]

By |2019-08-12T14:21:15-04:00August 12th, 2019|Categories: Spin-off Analysis, Uncategorized|Tags: |2 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

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

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 |2018-03-18T13:14:56-04:00February 29th, 2016|Categories: 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 |2018-03-16T16:50:41-04:00February 18th, 2016|Categories: Uncategorized|2 Comments