Donation link for this show: https://paypal.me/valueinvesting
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.
- Check if the spin-off is small in size for institutional investors
- Check insider ownership
- Check pro forma statements and derive an intrinsic value conservatively
- Look for hidden information that could dramatically change the intrinsic value