Spin-offs with Insider Buying (August 2021)

This month, we have a good amount of insider buying!

Let’s go in alphabetical order.

Armstrong Flooring (AFI)

Armstrong Flooring is a name that I’ve followed for a while ever since it was spun out of Armstrong Worldwide.

The company is in the midst of a turnaround.

It recently sold a property in California for over $70MM which enabled it to de-lever significantly.

It is still losing money, but revenues are recovering, and it’s likely that profits will follow suit.

AFI is a low quality business, but it’s very cheap trading at 0.2x current sales.

In prior years, it traded as high as 0.8x sales. If it’s turnaround plan can continue, there will be massive upside for the stock.

Insiders are buying the stock aggressively in the open market.