Analysis of Split-off Trading Strategies
Split-Offs proved to be very lucrative
Tag Archives: Special situation
New Contest: Win $1000 every month for sharing investment idea
Detailed info on the newly started monthly contest
Cosan (CZZ) – Tender Offer – up to $100 for odd-lots
Current Price – $8.66
Potential Recovery – $9.23-$9.65
Upside – $100 for odd-lots if priced at the upper limit
Expiration Date – 19th of December 2017
MSC Industrial Direct (MSM) – Odd Lot Tender Offer – no upside currently
Current Price – $72.53;
Offer Price – $66 – $72.5;
Upside – no upside currently;
Expiration date – 4 August 2016;
Baxter International (BAX) – Split-off Transaction – $335 upside (update)
A quick update
Exchange rate for BAX/BXLT split off transaction (see here for further info) has been determined at 1.1591. To lock in profit from this transaction one needs to buy 99 BAX, short sell 115 BXLT and then tender BAX shares till tomorrow (18th of May).
Techtarget (TTGT) – Odd Lot Tender Offer – no upside currently
Current Price – $7.87
Offer Price – $7.75
Upside – N/A
Expiration date – 8 June 2016
CRA International (CRAI) – Odd Lot Tender Offer – 5% potential upside
Current Price – $18.88
Offer Price – $18.00- $19.75
Upside – potentially 5% or $90 (if the upper pricing limit is used)
Expiration date – 21 March 2016
No proration for odd lot holders
Summary:
We are conducting the tender offer through a procedure commonly called a modified “Dutch Auction.” This procedure allows you to select the price per share (in increments of $0.25) within a price range specified by us at which you are willing to sell your
Nationstar Mortgage (NSM) – Odd Lot Tender Offer – minimal upside currently
Current Price – $9.05
Offer Price – $8.2 – $9.4
Upside – potentially 3% or $35 (if the upper pricing limit is used)
Expiration date – 11 March 2016
No proration for odd lot holders
Some thoughts: With the recent market volatility there is a good chance that better buying opportunities will appear before expiry of the offer
Summary:
Nationstar Mortgage Holdings Inc., a Delaware corporation, is offering to purchase shares of its common stock, par value $0.01 per share
Fortress Investment Group (FIG) – Odd Lot Tender Offer – 9% potential upside
Current Price – $4.36
Offer Price – $4.25 – $4.75
Upside – potentially 9% or $40 (if the upper pricing limit is used)
Expiration date – 4 March 2016
No proration for odd lot holders
Summary:
Fortress Investment Group LLC, is offering to purchase for cash up to $100,000,000 of its Class A shares representing Class A limited liability company interests, no par value (the “Shares”), pursuant to auction tenders at prices specified by the tendering shareholders of not greater than
SNR tender currently profitable at lower buyout limit
Quick note. SNR share price has declined (currently $8.65) and the tender is current profitable even at lower limit ($9). Check with your broker if you are still able to submit the shares today.