Since I launched my premium newsletter last year, a consistent point of feedback is that subscribers want more ideas.
For a while, I had mixed feelings about this feedback. On the one hand, I get it. It would be wonderful if instead of offering 5-10 high conviction spin-off ideas per year with lumpy timing, I could consistently have a new idea (or two) every month.
But in the real world, this is difficult (as you know).
High conviction investment ideas don’t just show up on a regular basis.
After careful consideration, I’ve arrived at a solution which will allow me to make more recommendations without sacrificing quality or conviction.
How am I going to do it?
By expanding my potential recommendation universe to include other special situations including liquidations, share exchanges, odd lot tender offers, and merger arbitrage.
While my main focus will remain investing in spin-offs, expanding my universe slightly will allow me to share shorter term, high conviction ideas.
What would be an example of this?
In March, I shared with my premium subscribers an opportunity to exchange LLY shares for ELAN shares and in the process, make 5.1% and ~$600 in two weeks with limited risk.
I also shared the idea on a delayed basis on my blog.
I don’t count this as an official recommendation as it was a short term trade that “only” made 7.1% (the return improved because LLY appreciated before the exchange). However, the idea was very popular and many have requested similar ideas.
The other benefit of these types of trades is that they can cover the annual cost of my service ($419).
While I’m not going to recommend a new stock just for the sake of having another recommendation, my hope is that these shorter term trades will complement my long term recommendations and better serve my premium subscribers.