Investing in Special Situations Podcast Episode – This is an episode from the Planet Microcap. The host interviews Mark Vanderwell, a full time special situations investor and member of Micro Cap Club. Mark dives into spinoffs, rights offerings, and other special situations. I found Mark’s insights into rights offerings super interesting/helpful.
Nuvectra Written up on Seeking Alpha – Q2 results show Nuvectra continues to execute well. 62% sequential growth for Algovita and insider buying bode well for the stock.
Brighthouse Spinoff Undervalued? – WSJ A recent spinoff from MetLife. Brighthouse (Ticker: BHF) specializes in annuities and individual life insurance. Its returns will depend on interest rates (rising rates helps) and the stock market’s returns. The WSJ argues. “If interest rates stay low, Brighthouse won’t be a winner. But investors are also getting compensated for this risk by the company’s low valuation of just 0.57 times adjusted book value.”
Another Timeshare Spinoff Wyndham will follow Marriott and Starwood’s lead and spinoff its timeshare business. As Spin Doctor notes, the timeshare spinoffs have performed quite well so it will be worth watching this one. The spinoff is expected to happen in the first half of 2018 so plenty of time to dig in.
Investor Interest in CARS Since being spun off from Tegna, CARS has bounced around a bit. The valuation is cheap on an absolute and relative basis due to uncertainty around the re-acceleration of growth. It’s interesting to note some very good investors are starting to sniff around. Recent hedge fund filings show Greenlight, Sessa, and Abrams have all started to establish positions.