Monthly Archives: November 2015

More Low-Risk Money With This Tender Offer

MAM SoftwareIf you’re looking for low-risk money in the stock market, one of the best places is with tender offers. As I explain in the tender offer section of this site, “The upside is low risk; the downside is low total return, though the annualized return on tenders is usually quite high. Sometimes you may be able to earn as much as 10% on your money in a month. Still, you can easily pocket $100-150 (sometimes more) for just clicking the mouse a few times.” And we have yet another company that’s announced the best kind of tender offer. Continue reading More Low-Risk Money With This Tender Offer

Thrift conversions are here!

I’ve completed my initial list of thrift conversions, which is sortable by IPO date, market cap, return on equity, price to tangible book value, ticker, and equity/assets.

The list provides some of the most relevant details in beginning research on the most interesting thrift conversions. In some cases, notably where the company is partially owned by a mutual holding company, I have not provided an adjusted market cap and price to tangible book value. Usually these stocks appear to trade at a substantial elevation above tangible book, and a quick look into the company will reveal this fact.

I’ve included thrift conversions of the last five years and a few others. As a general rule, the most interesting conversions are those in the last year or two, because they’re unknown and often remain relatively cheap. How cheap? It’s not too difficult — even in this rabid bull market — to find a very overcapitalized bank trading substantially below book.

Check it out here: http://thezenofinvesting.com/thrift-conversions/

AIG – Now Property and Casualty of Carl Icahn?

AIG_logo.svgLast week activist investor Carl Icahn revealed that he had taken a stake in AIG (AIG), and was agitating for the insurance company to be split up. While the exact size of Icahn’s position is not yet known, he was nevertheless pugnacious in his call for AIG to split into three companies. Icahn wants the insurer to pursue tax-free separations of its life and mortgage insurance businesses in order to avoid the federal government’s designation of AIG as a “systemically important financial institution.” Icahn also wants the insurer to focus more heavily on cost controls in a bid to bring them in line with peers’. Continue reading AIG – Now Property and Casualty of Carl Icahn?

Hewlett-Packard Is Splitsville

HP_New_Logo_2D.svgIt’s official: Hewlett-Packard (HPQ) and Hewlett-Packard Enterprise (HPE) have finally untied the knot. Monday saw the companies part ways, and investor reaction was initially mixed, though the bulls came out for the PC-and-ink business not long after, with that stock rising 13% on its debut day. Barron’s sees that legacy business as fairly valued at $14, right where it trades today. Continue reading Hewlett-Packard Is Splitsville

NorthStar Realty Europe — The Little Spinoff That Couldn’t

NRF imageWhat does the NorthStar complex have to do to get some love from the market? NorthStar Realty Finance (NRF) just spun off NorthStar Realty Europe (NRE) earlier this week, and the stock got beat with the ugly stick. NRE owns high-quality real estate in major European metros (Hamburg, London, Paris, Frankfurt, Berlin, Milan, and others). While it’s expected that externally managed REITs should be discounted, the discount being applied to NorthStar Europe is striking. Does the market hate external manager NorthStar Asset Management (NSAM) that much? Or is something else going on? Continue reading NorthStar Realty Europe — The Little Spinoff That Couldn’t

Fidelity National Financial Ventures Puts Spinoff on Hold

In Fidelity National Financial’s (FNFV) latest earnings call, management revealed that it was reviewing its spinoff of American Blue Ribbon Holding, its conglomeration of casual and mid-scale dining concepts, including the Village Inn, O’Charley’s, and Ninety Nine. The unit was slated to be spun by the end of the year, but with same-store sales up an anemic 1% in the quarter, it looks like management is studying the issue again. The delay comes amid the market’s poor reception of J. Alexander’s (JAX), which Fidelity spun just a few months ago. Continue reading Fidelity National Financial Ventures Puts Spinoff on Hold