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 consistently outperform the market averages. “
So how do we find spinoffs?
Luckily that is relatively easy.
1. Use Google News
Go to Google News: https://news.google.com
Search for “stock spinoff”
Here’s a screen shot of what I see when I do just that:
This simply technique will allow you to stay on top of the latest spinoff news.
2. Set up a Google alert
Go to www.google.com/alerts
There you will be able to enter “stock spinoff” for your alert. And then you can decide how often you want to receive the update (daily, weekly, etc).
See below for a screen shot of how to set up an alert:
3. Go to this website
Here you will find a list of upcoming spinoffs.
4. Seeking Alpha
Another good way to find potentially attractive spinoffs is to search http://seekingalpha.com/ for analysis on recent spinoffs.
I’ve found that the best way to do this is the following:
Go to google, and search for “seeking alpha spinoff”.
Next, use “search tool” to only display results from the last month. This will ensure that the results are not stale.
If you want to find a completely free and quick way to screen for stock spinoffs, click on the link below, enter your email address and I will share this secret with you.