“Who are the best people to follow for special situations ideas?”
In this thread, I will share my answer:
@AsifSuria
I’ve followed Asif for many years. His focus is insider trading and merger arbitrage, and he is excellent at both specialties.
Merger arbitrage is a category of special situation investing that I find tricky. I tend to gravitate to the high spread deals, but following Asif and reading his book has helped me improve my hit rate.
Here is a great example of one of Asif’s calls (JWN was ultimately taken private for $24.25).
@AndrewRangeley
Andrew creates a ton of high quality content through X, his podcast, and his free and premium service.
He is incredibly detail oriented and unearths really interesting ideas.
One idea that sticks out to me was Andrew’s recommendation to buy Kontoor Brands after its dividend was cut which led to forced selling pressure as a dividend focused ETF had to sell millions of shares…
Peter Lynch famously loved spin-offs with insider buying.
Today, there are 4 spin-offs with interesting insider activity.
Let's go in alphabetical order:
$AMTM
On September 27th, Jacobs spun off its Critical Mission Solutions and Cyber & Intelligence businesses. The spun off divisions merged with PE backed Amentum, and the new company kept the Amentum name.
Amentum performed well in initial trading, but has since traded down on concerns related to the Department of Government Efficiency (DOGE).
How will DOGE impact Amentum?
On its recent earnings call, management said it’s too early to tell:
Peter Lynch famously loved spin-offs with insider buying.
Today, there are 3 spin-offs with interesting insider activity.
Let's go in alphabetical order:
Enhabit ($EHAB)
Insiders have been buying for a long time.
But the stock has been a disaster.
What does Enhabit do?
It’s a home health and hospice company which was spun out of Encompass Health (EHC).
@ClarkinM did a nice job writing it up recently...
He writes "home health and hospice care has some strong tailwinds with an aging population, a push towards cheaper healthcare settings and a highly fragmented market (even the larger players like Enhabit only have single digit market shares) in need of consolidation (clinic/route density is an important driver of operational leverage).clarkstreetvalue.blogspot.com/2024/05/enhabi…
In May, $DD announced that it plans to break up into 3 public companies:
1) New DuPont 2) Electronics 3) Water
The transaction is expected to take 18 to 24 months to be completed.
New Dupont will be a diversified industrial with $6.6BN in revenue and ~24% EBITDA margins. It will serve the following end markets: health care (25% of sales), mobility (25% of sales), safety and protection (50% of sales).
New Dupont will be a diversified industrial with $6.6BN in revenue and ~24% EBITDA margins. It will serve the following end markets: health care (25% of sales), mobility (25% of sales), safety and protection (50% of sales).
I’m a small investor, and it’s sometimes hard to get in touch with management or investor relations.
Today, I’m going to walk through the specific tactics that I use to get in touch with management/IR:
I love talking to investor relations / management.
Why?
A couple reasons: 1) It helps me confirm the facts. 2) It helps me get up to speed on a company faster. 3) It allows me to “feel” whether insiders are excited or not about their stock.
How do you find contact info to set up a call with a company?
The best place to look is the investor relations section of the website: