This site covers special situation investment ideas and arbitrage loopholes with short term catalysts. All investment opportunities are tied to some specific corporate actions or events that are expected to generate returns in the near future with lower risk. Covered special situations include Merger Arbitrage, Liquidations, Tender Offers, Going Private Transactions, Spin-offs and split-offs, and various others types. Unbiased high quality research is provided for each idea.
Previous ideas are free to view for all visitors, however currently actionable ideas are restricted to members only. Currently there are 8 Actives Ideas posted on the site.
RECENT WINNING IDEAS
Back in Oct 2016 Energy Transfer Partners acquired 65% of PTXP and hinted its intention to buy-out the remaining public shareholders. Despite this PTXP was still trading significantly below the value at which ETP made the purchase and also at discount to its fair valuation. At the time when I published this idea (Feb 2017) ETP was pre-occupied with the merger of Sunoco Logistics and I reasoned that as soon as this merger is completed, the announcement will be made regarding the remaining public equity stub of PTXP.
That is exactly what happened – SXL/ETP merger was completed at the end of April and just yesterday ETP announced buyout of the remaining PTXP shares at $20/share.
Tangoe was a company in a bit of a turmoil – financials were non-current, previously filled financials had to be restated, there was a pending class action lawsuit as well as ongoing SEC investigation. Despite this couple parties have expressed the interest to acquire Tangoe and shares were trading with a narrow spread relative to the expected acquisition price. However, in March TNGO delisted from NASDAQ and forced selling caused shares to drop 20%. This created a great buying opportunity. I reasoned that TNGO acquisition offer is still on the table as one the potential acquirers expressed their full awareness of financial mess TNGO was in and suggested that this situation did not reduce their interest. At the same activist investors were pressing the company to sell itself.
Just few weeks later, it was announced that Marlin Equity Partners have agreed to acquire TNGO at $6.5/share.
Wingstop share price jumped +14% to all time highs after release of Q1 earnings due to good looking headline revenue and EPS numbers. However, the headline figures were misleading and were driven purely by non-cash accounting changes and one-time revenue item. In reality Q1 earnings showed hardly any positives with first ever decline in same store sales and continued deterioration in growth. I reasoned that such exuberant trading was likely caused by algorithmic robot trading or completely superficial retail investors who misread the headline numbers for huge improvement in operational performance. And due to that I shorted WING expecting fast share price correction at least towards pre-release numbers.
WING shares started dropping the next day and now stand close to the levels before the earnings release. All worked out exactly as expected with short position generating 10% in 2 weeks (option buyers generated multi-bagger 4x).