you can be a stock market genius summary you can be a stock market genius summary
Spinoffs, Rights Offerings and Mergers
- Spinoffs, usually, beat the market.
- Choosing your spots, in the spinoff universe, can generate even better results than the standard spinoff.
- Characteristics that point to an exceptional spinoff opportunity are:
- Institutions don’t pursue the spinoff (and not because of the investment merits).
- Insiders cannot get enough of the spinoff.
- A previously hidden investment opportunity is revealed by the spinoff transaction (e.g., a cheap stock, a great business, a leveraged risk/reward situation).
- You can find and look over new spinoff prospects by reading the business press and following up with SEC filings.
- Concentrating on parent companies can pay off handsomely.
- Partial spinoffs and rights offerings provide special investment opportunities.
- Merger Securities ✅✅✅
- Bankruptcies can bring about unique investment opportunities — but be selective.
- In most cases, don’t purchase a bankrupt companie’s common stock.
- The bonds, bank debt, and trade claims of bankrupt companies can give rise to attractive investments.
- Delving in newly issued stocks of companies coming up from bankruptcy can be rewarding; similar to spinoffs and merger securities, bargains are often created by anxious sellers since they never asked for newly issued stock.
- Unless the price is tantalizing, invest in companies with attractive businesses.
- Trade the bad ones, hold the good ones.
- Attractive values can be laid bare through corporate restructuring.
- Search for companies that have limited downside, an attractive business to restructure, and a well incentivized management team.
- In budding restructuring situations, search for a catalyst that would get the ball rolling.
- Make certain the size of the restructuring is noteworthy in relation to the weight of the total company.
You Can Be A Stock Market Genius Summary
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