How to Invest in a Spin-off

From Joel Greenblatt’s excellent You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits, we learned that some of the best value opportunities arise from corporate transactions such as spin-offs, restructurings, mergers and recapitalizations. The Globe and Mail ran an article this weekend about the roller-coaster ride of spin-off investing:

Corporate spinoffs are back in style among companies looking to give their share prices a boost – or “unlock” value. According . . .

→ Read More: How to Invest in a Spin-off

Joel Greenblatt: Success comes from buying at a big discount to value (Video)

Joel Greenblatt is the founder of Gotham Capital, a firm that earned 40% annualized returns over the twenty years he managed it. In the following video, he discusses the factors that contributed to his success:

Source: Yahoo Finance

Talk to Frank about this video

You Too Can Be A Stock Market Genius

You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits was written by Joel Greenblatt, founder of the hedge fund Gotham Capital. I recently had a chance to read it and found it to be the best book I have found yet on the topic of value opportunities created by different market events, including:

Spin-offs Rights offerings Mergers Bankruptcies Restructurings Recapitalizations

Greenblatt’s Initial Advice:

Do your own work . . .

→ Read More: You Too Can Be A Stock Market Genius

Magic Formula Investing

As a prelude to a post I’ll be having appear shortly, I thought I would explain what the Magic Formula is.

Joel Greenblatt is the progenitor of the Magic Formula. His credentials include being the founder of the hedge fund Gotham Capital which returned in excess of 50% per annum from 1985 through 1995 (source). Additionally, he authored You Can Be a Stock Market Genius (one of the best books I’ve read for insight into value . . .

→ Read More: Magic Formula Investing