Frequently Asked Questions
Do you mainly focus on US spin-offs or will you follow international spin-offs as well?
Initially, our main focus will be on US spin-offs, but if we see any compelling international spin-offs, they will be included. We hope to build out our coverage of international spin-offs over time.
How do you track all spin-offs, especially international spin-offs?
We have access to a Bloomberg terminal which lists all (including international) spin-offs. In addition, we use google news alerts to monitor any news related to recently announced or imminent spin-offs.
How much time is spent researching a stock before it is recommended? How long are write-ups ?
We estimate that we spend ~40 hours researching and analyzing a stock before recommending it. The length of the write up will depend on the complexity of the investment. However, the length of our write-ups has historically varied from 6 to 18 pages.
Do you expect to focus primarily on small cap spin-offs?
Yes, we expect to focus mainly on small and micro cap spin-offs. However, if there is a compelling mid-cap or large cap, it will be included.
Will any non spin-offs be included in your recommendations?
While our primary focus will be stock spin-offs, we may include a non stock spin-off recommendation if we believe the stock represents a compelling risk/reward opportunity.
Once I subscribe, will I get access to previous newsletters?
Yes. The first newsletter was issued on July 6, 2018, and all historical newsletters are posted at the bottom of the Members page.
Are any discount codes available?
I offer a 20% discount if you subscribe for more than one year. Email me at Rich@stockspinoffinvesting.com if you would like access to this discount.
Why weren’t there any recommendations since 2016?
I didn’t recommend any new stock from 2016 until I launched my premium service because I was working full time at a large private bank 60+ hours per week and have a family and kids. So I didn’t have as much free time. Also, I still really liked all the stocks that I had recommended except for AFI (should have pulled the plug on that one earlier). I was doing a lot of work following those names and didn’t have time to add new recommendations given my other time commitments.
But starting in April 2018, I left my job and am 100% focused on this. It took me a while to get my first recommendation out as I was redesigning the site and setting up my business.
What went wrong with AFI?
I should have closed out my recommendation earlier. I recommended the position in early 2016, and the thesis was based on mid single digit revenue growth, margin expansion, and valuation expansion. AFI executed pretty well through the middle of 2016, but by year end it appeared that revenue growth and margin expansion was going to be harder to come by than originally anticipated. So harder to expect valuation expansion without solid revenue growth and margin expansion. In early 2017, the stock was still trading around $19 per share (I recommended the stock at $15.76). So I should have just pulled the recommendation and moved on as my thesis was not playing out. Unfortunately, the company continued to struggle hitting its targets and the stock price collapsed. I finally cut my losses in early 2018. So the key lesson here is to sell when the investment thesis changes or it’s clear that management is not executing on its goals.
If I originally sign up for a monthly plan, can I change it to a yearly plan?
Yes just email me, and I will change your plan. If you request the change, the unused portion of your monthly payment will be credited towards the cost of the annual plan.