Upcoming investment ideas
Just wanted to drop a note on a few ideas that I will be following and may have potential within the next year or so. *Spinoff season is right around the corner and I have done well with spinoffs in the past. *As most of you know the American Express FP division will become its own entity and may be worth a look. *Another that hasn't quite received as much attention is Dean's food division which includes a lot dairy/soy products outside of milk. *The new unit will be run by a former Keebler executive and the insiders will own quite a bit of the new company (so they should act in the interest of shareholders at least for a bit). *We may see Morgan Stanley unload a few divisions or at least the Discover unit. *Spinoffs can do well if they are in a decent, profitable business and if they do not have much wall street "hype" following their debut. *An immediate catalyst is just the new company's ability to function as a separate entity. *Many times the parent company, prior to the spinoff, will not allocate sufficient resources to a lagging unit. *However, this does not mean they are poor businesses just capital starved. *Usually the spinoffs I have bought have been good for 20-40% gains so you probably will not get rich overnight but a good, steady pop nonetheless. *Just something to follow.
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"