Tag Archives: you can be a stock market genius

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

 


EP24 How To Identify Good Spin-offs by Joel Greenblatt (Case Study on Marriott)



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A legendary value investor, Joel Greenblatt, explains why value investors should pay special attention to spin-off stocks.  This episode shows you how Joel Greenblatt identified a very attractive investment opportunity from Marriott’s spin-off that happened in the past.  The spin-offs that involve the following points would give you a better chance for your investment success.

  1. Institutions don’t want it and their reasons don’t involve the investment merits
  2. Insider wants it
  3. A previously hidden investment opportunity is created or revealed

More details could be found from this book (You Can Be a Stock Market GENIUS).

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