Man I figured that I'd crank out one of these updates every couple of days, but there's been so much cool news out there that I had to post it. I don't know whether I have gotten better at finding it or if there has just been a large number of special situations lately. Perhaps a little bit of both, which is funny considering that many people currently consider special situation investing out of fashion. All the better for us. [more]
Before diving right into today's Special Situation News, I thought that I'd share a few thoughts on why I blog, perhaps more for my own benefit than anyone else's. First and foremost, blogging encourages me to look for and research interesting investment ideas. Without it I probably would not have the motivation to look as hard as I currently do for new, cool special situation ideas. Furthermore, writing about them and getting the occasional comment from others on them here in CAPS helps me to think about them more clearly, to see what I do and don't like about potential investments. [more]
1) I'm personally not all that comfortable with investing real money in a private prison operator from a moral perspective, but I think that a conversion into a REIT would be a great move for Geo Group (GEO). This situation hasn't gotten nearly as much publicity as Corrections Corp.' of America's (CXW) efforts to convert, probably because of Bill Ackman's involvement in CXW, so that may be why it appears slightly cheaper. CXW is up over 17% versus only 2% for the S&P 500 since I added it in CAPS on news of its potential REIT-conversion back in April. I'm adding as many REIT-conversions as possible in CAPS to track their performance. [more]
Here's the birthday edition of the Special Situation Investing News. Whew, 38 shots this year. This is going to be a tough one :). I wasn't going to log-in this evening, but there was so much interesting news out there today that I just couldn't resist: [more]
1) Here's what one of my favorite and one of the more successful activist investors JANA Partners has been up to: [more]
1) Here's an update on one of my larger personal holdings courtesy of our very own Motley Fool. Macquarie Infrastructure (MIC) is an absolutely perfect stock for me. It shares all of the characteristics that I look for in an investment. It has a special situation-esque catalyst and it pays a solid dividend for me to wait until the catalyst materializes.
I love "story" stocks (as I call them) like MIC. When I say story stocks I don't mean some fairy tale about how this or that might happen in the future, but an actual specific event that has a very good chance at unlocking value in the future. In MIC's case it was a pending legal dispute between it and the co-owner of one of its businesses that had the potential, if successfully settled, to allow the company to significantly increase its dividend in the future. That's exactly what materialized at MIC, in addition to solid operating results, the company announced yesterday that it is raising its annual dividend from 2% and change to over 6%. If that's not a stock-moving catalyst, I don't know what is.
Why Macquarie Infrastructure's Shares Popped