Dividend As A Catalyst

Dividend As A Catalyst One of my favorite spin-off strategies is the "dividend as a catalyst" trade. Here's how it works: Identify a spin-off that will be indiscriminately sold, determine the expected dividend yield, wait to buy until 30% of shares out have traded and the stock is trading at attractive implied dividend yield, sell [...]

By |2022-03-30T17:40:08-04:00March 30th, 2022|Categories: Special Situations Playbook, Spin-off Analysis, Stock Spin-off Case Studies|Tags: , |1 Comment

How to Short a Spin-off Before It Begins Trading

How to Short a Spin-off Before It Begins Trading I love spin-offs (shocker, I know). The main reason is that the indiscriminate selling pressure associated with spin-offs allows me to buy bargains. Why do spin-offs sell off when they begin trading? Seth Klarman of the Baupost Group explains why this dynamic exists in Margin [...]

By |2021-10-06T17:43:19-04:00October 6th, 2021|Categories: Educational|Tags: , , , , |1 Comment

How to Front Run the Index

How to Front Run the Index Printable PDF Version I had just finished my third cup of coffee as the market opened. I settled into my chair and watched the early price action of Kontoor Brands (KTB) on its first day of trading with eager anticipation. You see, one of my favorite things to do [...]

By |2019-08-28T18:02:28-04:00August 28th, 2019|Categories: Market Analysis|Tags: |2 Comments
Go to Top