SPC Premium: A Spin-Off Trifecta
Our "Super 10" special-situation stock just handed us a bonus ...
I love corporate “spinoffs.”
And I always have …
They’re one of my favorite “special-situation” plays (which I also love) — and with good reason.
Generally speaking, when a company splits itself into two or three pieces, you can do really well in the years to come.
Think about it … when ONE single, ponderous company splits into
TWO smaller ventures … that newfound independence open up new vistas — and new pathways to profit.
Those new companies are:
More efficient.
More nimble.
More innovative — and open to new ideas.
And more likely to have management teams whose interests are aligned with shareholders.
One last thing: Thanks to their focus, profitability and “bite-sized” valuations, so-called“SpinCos” are often juicy takeover plays.
The upshot: Spinoffs are often beat-the-market opportunities — and studies from JPMorgan Chase & Co. JPM 0.00%↑ and TheEdge.com prove it.
I’ve made money from spinoffs myself. And I’ve brought a nice roster of them to my newsletter subscribers through the years (and scores of other special situations, besides).
Why am I telling you this?
Simple.
One of the “Super 10” Special-Situation stocks we brought you as a “bonus” portfolio just one month ago just handed us a bonus of its own — a surprise spinoff.
And I’m going to tell you all about it — today.