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Special Situation Investing


Packer16

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I've been looking at the SUNH spinoff of RE assets into a REIT. Looks promising, but I haven't had a chance to read all of the past 5 yrs ARs yet, so have not pulled the trigger. The stock seems to be performing well this week, and there is even a Guru Focus article that pegs the current price at 1/2 intrinsic value after spinoff.

 

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I have a membership.  It's good for people with smaller portfolios and the discussion is decent.  It's cheap so I'd say it's definitely worth it.  But if you already have a separate gmail account with google alerts with good automatic search strings updated daily, you might find most ideas redundant. 

 

So the search string is buyout, arbitrage, spinoffs?

 

Netnet

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I have a membership.  It's good for people with smaller portfolios and the discussion is decent.  It's cheap so I'd say it's definitely worth it.  But if you already have a separate gmail account with google alerts with good automatic search strings updated daily, you might find most ideas redundant. 

 

How do you set up an automatic search string?  :-[  TIA

 

cheers

Zorro

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I have a membership.  It's good for people with smaller portfolios and the discussion is decent.  It's cheap so I'd say it's definitely worth it.  But if you already have a separate gmail account with google alerts with good automatic search strings updated daily, you might find most ideas redundant.  

 

How do you set up an automatic search string?  :-[   TIA

 

cheers

Zorro

When you do the search on Google News, on the search results, it will put a link for you to set up automatic email alert.

 

 

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I know may on this board investing in special situation.  Does anyone use Fat Pitch Financials Contributor Board as a source for these situations?  I think there is a $125 per year fee.  TIA

 

Packer

 

I always got the impression that most of their ideas were odd-lot tender offers. This is profitable, but it only moves the needle if you have a small portfolio. 

 

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Interesting special situation currently in progress is Novell (NOVL). Elliot International Capital Advisors bid for the NOVL back in March for $5.75, and soon after Paulson & Co established a 5% position at around $6.00 per share. Paulson has since upped its position to 8.5%. The stock is currently around $6.00 as the deal has taken longer than expected to materialize. Samana Capital, Paulson & Co, and Elliot International currently hold 8.7%, 8.5%, and 7% of total shares outstanding, respectively. This is a coattail play betting the big guys make something happen - whether it's a sale, buyback, or special dividend. Total market cap is $2B and there is $1B of cash on NOVL's balance sheet.

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