Tag Archives: spinoffs

EP25 Four Tips To Identify Good Spin-offs (Case Study-Strattec Security) by Joel Greenblatt



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Joel Greenblatt’s book (You Can Be a Stock Market GENIUS): https://amzn.to/2vjCwfX

In the book, Joel Greenblatt provided the following four tips via a spinoff case study (Strattec Security) on how to identify good spinoff opportunities.

  1. Check if the spin-off is small in size for institutional investors
  2. Check insider ownership
  3. Check pro forma statements and derive an intrinsic value conservatively
  4. Look for hidden information that could dramatically change the intrinsic value