Why Ingevity Corp (NGVT) Spin-Off Quickly 2-Bagged?Guest Post
I recently updated the spreadsheet in which I track spinoff pipeline and post-spin stock performance. Next I pulled up stock charts of spins from the past 12 months: I noticed a mix of losers, winners and even some flat-liners. But one thing becomes crystal clear in looking at these charts: A very large majority of spin-offs are wildly mis-priced at emergence. Mind you, when I say “mis-priced”, I am not referring to over or under-valuation but literally talking about the stock price.
Students of Special Situations investing à la Joel Greenblatt already know the usual . . .
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