Do You Invest in Special Situations?
We focus on event-driven trades and low risk arbitrage opportunities with short term catalysts
We focus on event-driven trades and low risk arbitrage opportunities with short term catalysts
Warrant arbitrage case. The company temporarily reduced the exercise price of their warrants creating a large spread between the common.
A prime example of merger arbitrage where fundamentals strongly supported the start of the bidding war and continued increases in the offer price.
Selling volatility after far out of the money options with expiration in only two weeks started trading at ridiculous premiums
On average we publish 5-10 new new investment opportunities every month. Covered cases include merger arbitrage, tender offers, option trades, spin-offs, split-offs, liquidations, bankruptcies, SPACs, going private transactions, rights offerings and many other types of event-driven situations.
Each trade is actively discussed by investors on SSI who range from hedge fund managers to individual stock pickers - all sharing ideas and talking event-drive trades on a daily basis.
All currently actionable investment opportunities are exclusive to SSI subscribers. Sign up today and gain full access to the latest ideas and discussions. One successful trade will more than cover the cost of subscription.
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Ashford Hospitality Trust (REIT with 116 hotels) launched tender offer to exchange all of its preferred shares into common shares at 5.58 ratio diluting existing common holders by 90%+. AHT was severely hit by the COVID-19, which resulted in substantial cash burn and a tight liquidity situation. The company claimed that they need this exchange in order to get rid of the preferred stock burden and ease their access to capital markets. Management seemed very incentivized and in the process has waived pretty much all of the outstanding conditions that were obstructing the transaction. Eventually, all tendered shares were accepted for exchange resulting in 200% return for the unhedged positions and 80% return for hedged positions.Ashford Hospitality Trust (AHT) – Preferred Stock Tender – 80% In 1 Month Read more
This was a standard split-off transaction. DuPont de Nemours (DD) was selling its Nutrition & Biosciences (N&B) business to International Flavours & Fragrances (IFF). As part of the transaction, N&B had to be split-off and merged into a subsidiary of IFF. DD shareholders had the option to participate in the tender and exchange their DD shares for IFF shares. Every $100 of DuPont stock accepted in the tender was be converted into $107.53 of International Flavours & Fragrances (IFF) stock subject to the upper limit of 0.7180 shares of IFF per DD share. Odd lot priority was included. Borrow for hedging was unavailable on IB. As with every previous split-off deal before, this transaction closed successfully. Unhedged positions (as hedging was not an option) resulted in a +17% gain (for odd lots) in 1 month.DuPont de Nemours (DD) - Split Off - $1300 In One Month Read more
At a first glance, alternative energy firm Sky Solar seemed like a messy and repulsive situation (US-listed Chinese firm with fraudulent ex-CEO + pile of litigations), however, deeper research revealed that besides being backed by US VC firm, SKYS was also a target of several privatization proposals by non-Chinese parties. The most recent all-cash offer came from a Japanese led consortium, which then owned 72% of the company, whereas a certain SKYS debt holder Hudson Capital tabled a "considerably higher bid" (despite bombarding the company with litigations claiming insolvency). Eventually, the Japanese consortium terminated their proposal and filed a tender offer instead aiming to raise their stake from 77.5% to 90% and then move for a squeeze-out. On such news, most of the arbitrage spread was eliminated and the idea was closed with 100%+ return in 1 month.Sky Solar (SKYS) - Merger Arbitrage - 100% In 1 Month Read more
Charles & Colvard, moissanite producer received an opportunistic acquisition proposal that was turned down by the board. At the same time an activist/largest shareholder with 10% ownership was pushing for the sale of the company with $2/share (150% upside) valuation in a conservative scenario. Downside appeared to be limited and the company looked cheap assuming recovery from COVID and a successful tun-around plan. Eventually, the company announced Q3'20 results, which were very positive, and expectations for Q4 were even higher due to the holiday season, reopening of the stores, and addition of 50 new retail stores in Macy'. Insiders continued to acquire shares as well. All in all, many different catalysts seemed to be on the table. And, although there have been no further news from the activist, CTHR stock appreciated significantly.Charles & Colvard (CTHR) - Potential Acquisition Target - 91% In 3.5 Months Read more
Meten EdtechX Education Group was a failed post-merger SPAC that due to liquidity issues, temporarily reduced the exercise price of their warrants from $11.50 to $1.40 per each warrant. The situation provided an attractive arbitrage opportunity and it seemed that the offer was likely to go through as the company was impacted by COVID and needed extra cash to survive. Aside from that, insiders held a third of the warrants and also seemed to be incentivized to cheaply increase their ownership in METX. There was a 65% acceptance condition, however, it was eventually waived and the offer went through as expected generating +175% returns on the warrant price in one month.Meten EdtechX Education Group (METX) - Warrant Arbitrage - 175% In One Month Read more
Countrywide, one of the largest real estate agencies in UK, received a preliminary offer at £2.50/share in cash from its peer Connells Group. Although the proposal was still at a non-binding stage, the situation seemed interesting as the company had certain upcoming issues with debt covenants and this takeover presented a better pathway than the extremely dilutive recapitalization transaction recently proposed by another firm. The buyer seemed credible and the strategic rationale was sound. Certain activist, which owned 10.5% of CWD.L also was expected to support the offer. The offer price appeared to be relatively low, but kind of justifiable due to the weaker performance of CWD.L compared to the peer firm. Eventually, Connells not only provided a firm offer but also increased the price by 30%.Countrywide (CWD.L) - Merger Arbitrage - 53% In 1 Month Read more
Investors on SSI have a wide range of competences: from individual stock-pickers and stock bloggers to hedge fund managers and arbitrage funds. Everyone is invited to ask questions and receive valuable feedback.
We continuously track and update all investment opportunities posted on the site. E-mail notification available for new ideas and discussions. A site-wide summary report with updates on each active idea is issued on a monthly basis.
Contribute with your own research on a special situation investment idea or event-driven trade and receive full access to SSI for free. Application required, admission standards are high.
Disclaimer: Historical performance statistics shown here and on other parts of SSI website do not represent actual trading results and are meant for informational purposes only. There is no guarantee that cases currently published on SSI or to be published in the future will deliver similar results.
Win rate indicates the percentage of all published ideas that we consider to have worked-out favorably in the expected direction. To stay conservative, cases that generated lower than 1% returns are considered as losers.
In-depth guide on merger arbitrage with number of real live recent cases.
Detailed coverage of various types of special situations and tips on how to think about them.
Comprehensive look into split-offs: best trading strategies and historical performance.
I don't have a sophisticated investment background and investing for me is more like a hobby that I enjoy very much. SSI was recommended to me by one of my friends, who is a professional investor. So far I think it's great. Lots of new ideas and it's easy to follow all the updates, which I hard keeping track off when doing on my own. It's very handy to have it all in one place and read members opinions too.Duncan S Private Investor
SSI research is a massive help to my due diligence and investment decisions. The site helps me to discover new ideas and get a broader perspective on them. I find the feedback/pushback from other professionals members to be very valuable. SSI research often fills the gaps in my own analysis and several times the discussions with other members saved me from making some expensive mistakes. I guess investing is an ever-learning process. Overall, great work guys.Tony G Private Investor
I have been investing in special situations for over 10 years and in this field SSI is the best you can find. The team behind the portal is definitely putting themselves up to high-quality standards. Investment ideas are top-notch and well-researched, whereas updates are always timely and insightful. Aside from being a place to discover new investment ideas, I find discussions with fellow members to be very valuable.Brian P Private Investor
It doesn't matter whether you're just a beginner or a highly experienced investor already. If you're interested in special situations, I don't see why you shouldn't become a member. SSI offers you all that you can expect from such a service and more. The research is very high quality and with over 20 years of investment background, I must say that I've been surprised by how good SSI track record and performance are. Simply put, SSI gives you more than what you pay for - and that sounds like a good investment to me.Daniel M Private Investor
I'm a full time investor and I have been following SSI for over one year. Just wanted to say that I'm definitely enjoying the site and actuallly learned a lot from you and the community. I read all of the featured ideas and check the site on a daily basis. Don't want to miss yet another good trade. Thank you for your efforts and keep up the good work!Andy U Private Investor