Why Ingevity Corp (NGVT) Spin-Off Quickly 2-Bagged?
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 . . .
SORRY! This content is exclusively for paying members. If you are subscribed and having an account error please clear cache and cookies if that does not work email [email protected] or click Chat.
|
