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.
Siliconware Precision Industries (SPIL) – Tender Offer with Odd lot provision – 9% upside
Current Price – 7.55
Offer Price – 8.22
Upside – 9% ($134 guaranteed return for odd lots)
Odd lots – shareholders who own less than 200 shares will be bought out on priority basis.
Expiration date (to tender shares) – 11 February 2016
This is a hostile tender offer carried out by ASX, and as such is has a higher risk of being cancelled than other tenders presented on this site. Moreover, the tender is subject to regulatory approval. However,
Franklin Covey (FC) – Dutch Auction with Odd Lot provision – 9% potential upside
Current Price – $16.29
Offer Price – $15.5 – $17.75
Upside – 9% or $140 (if the upper pricing limit is used)
Expiration date – 12 January 2016
Summary:
We are offering to purchase up to $35,000,000 in value of shares in the Offer. On the terms and subject to the conditions of the Offer, we will determine a single per share price, not greater than $17.75 per share nor less than $15.50 per share, net to
Willis Lease Finance Corp (WLFC) – Odd Lot Tender Offer – minimal upside currently
The share price shot up right after the announcement but might reverse during the course of the tender.
Current Price – $17.39;
Offer Price – $15.5 – $18;
Upside – $60 or 3.5% (if the upper pricing limit is used);
Expiration date – 16 December 2015;
No proration for odd lot holders;
Summary:
Willis Lease Finance Corporation is offering to purchase for cash up to 516,129 shares of its outstanding common stock, pursuant to auction tenders at prices specified by
Fly Leasing (FLY) – Expected Dutch Tender Offer
This is a possibility to start position before the tender offer details are revealed.
Fly Leasing announced last week, that the company will start Dutch tender offer for $75m. No further details on pricing or timing have been announced yet (expected early this week).
From historical experience, these Dutch tenders tend to have odd-lot provision and quite often price jumps upon pricing announcement (quite often arbitrage disappears after trading announcement.. Keeping in mind that FLY is currently trading at 12-month
NCR Corporation (NCR) – Odd Lot Tender Offer – $250 upside
Current Price – $27;
Offer Price – $26 – $29.5;
Upside – $250 or 9% (if the upper pricing limit is used);
Expiration date – 11 December 2015;
No proration for odd lot holders;
Summary:
NCR Corporation, a Maryland corporation invites our shareholders to tender shares of our common stock, par value $0.01 per share, pursuant to auction tenders at prices specified by the tendering shareholder of not less than $26.00 and not greater than $29.50 per Share. We are offering