The 40% Rule: How to Time Your Entry Into a Spin-Off
Spin‑offs often suffer a predictable sell‑off as institutional and passive investors dump shares they are not mandated to keep. Research shows the worst price pressure lasts about five trading days, after which stocks typically bottom once roughly 40‑50% of outstanding shares have changed hands. The article illustrates the pattern with Jackson Financial and GRAIL, highlighting how a disclosed dividend or other capital return can spark a swift re‑rating. By tracking cumulative volume and dividend cues, investors can time entry to capture the upside while avoiding the forced‑selling tail.
The Record Date Myth: Why Most Investors Miss Out on Spin-Offs for No Reason
Investors often believe the spin‑off record date is the final deadline to secure shares of the new entity. In reality, shareholders can purchase the parent company up to the day before the spun‑off’s regular‑way trading begins and still receive the...
Podcast: Chris Waller of Plural Investing and Hidden Gem Investing
In a recent podcast, Chris Waller of Plural Investing and Hidden Gem Investing breaks down two high‑profile spin‑offs—GCI Liberty (GLIBK) and Seaport Entertainment (SEG). He explains why rights offerings on spin‑offs, championed by investors like Joel Greenblatt, can be compelling...