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The Greatest Compilation of Special Situation Investing News EVER...or at least since the last time I did this

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July 28, 2011 – Comments (6)

I tell you, one goes away on vacation for a week and boom, there's more fascinating news about investing than you can shake a stick at (what in the heck does that saying mean anyhow).  Here's some of the items that caught my eye as I try to catch up on all of the news.  Some of them I have read already and some of them I'm planning on reading soon.

L-3 to Spin Off $2 Billion Unit as Whitworth Challenges 

http://www.bloomberg.com/news/2011-07-28/l-3-spins-off-2-billion-services-unit-as-whitworth-challenges.html

LLL finally agrees to spin-off its lower margin businesses.

 

Sycamore Networks Is Starting to Get Interesting

http://seekingalpha.com/article/282599-sycamore-networks-is-starting-to-get-interesting 

An interesting article about a cash rich tech company that has terrible products which is rapidly approaching net-net territory.  Renowned value investor Seth Klarman has a position in it.

 

David Einhorn Can’t Catch a Break

http://www.insidermonkey.com/blog/2011/07/28/david-einhorn-cant-catch-a-break/

Einhorn and a number of other famous value investors got hammered today as Sprint reported a terrible quarter.

 

Starboard Value Announces 6.3% Ownership Stake In Wausau Paper 

http://www.rttnews.com/Content/QuickFacts.aspx?Node=B1&Id=1677002

Starboard Reports 6.3% Ownership in Wausau Paper

http://www.sunherald.com/2011/07/28/3307758/starboard-reports-63-ownership.html

The successful activist investor Starboard Value has a new target in its sights.  Its recent letter to the company includes sum-of-the-parts analysis, which I always love.

 

Motorola Solutions profit doubles in 2Q

http://www.chicagotribune.com/business/breaking/chi-motorola-solutions-20110728,0,200261.story

A company that I aaaaaaalllllmost bought in real life a couple of weeks ago, Motorola Solutions (one of the parts of the recent Motorola break-up) reported an outstanding quarter.  I passed because I was afraid that municipalities and the government wouldn't have enough money to invest in new equipment.

 

Genzyme misses drug shortage milestone; CVR tumbles

http://www.bizjournals.com/boston/news/2011/07/28/genzyme-misses-milestone-drug.html

I sure am glad that I decided to pass on buying those Genzyme CVRs.  It looks like one of the most easily attainable milestones is going to be missed.  They were down a whopping 40% today.  Ouch.

 

ConocoPhillips' spinoff a work in progress

http://www.chron.com/disp/story.mpl/business/energy/7672445.html

Some additional information on COP's upcoming spin-off, which as a new shareholder of the company I plan to participate in.

 

CVR Partners Reaffirms Distribution Guidance Of $1.92 For Twelve Months Ending March 31, 2012

http://www.dailymarkets.com/stock/2011/07/28/cvr-partners-reaffirms-distribution-guidance-of-1-92-for-twelve-months-ending-march-31-2012/

Current Deej holding UAN reaffirms its outstanding 8.2% dividend.

 

Pfizer: Spinoff Likely for Animal Health 

http://online.wsj.com/article/SB10001424053111903635604576472370327976488.html

As a current shareholder who originally purchased PFE as a value / dividend play, the recent news about its potential spin-off of one or more divisions is music to my ears.

 

Sweet Debut for Dunkin’ Brands

http://dealbook.nytimes.com/2011/07/27/dunkin-brands-sweet-debut/?nl=business&emc=dlbkpma21

Throwing iced coffee on the Dunkin' IPO

http://finance.fortune.cnn.com/2011/07/26/dunkin-donuts-ipo/ 

The IPO market has been absolutely amazing lately.  Dunkin' Donuts newly public stock looks a little overpriced to me, but at least it's a real business unlike all of the social networking and websites that generate their revenue from advertising that have recently gone public.  Despite my pledge a while ago not to short over-priced tech stocks any more in CAPS, I couldn't take it and recently decided to short LNKD, Z, and P here.  Of the three Zollow has to be by far the worst.  My wife works in the real estate field and I can assure you that things are not going well there.  That can't be good website that generates most its revenue from advertising from said industry.  Not to mention the fact that the site's "Zestimates" of home values are an absolute joke and its information is frequently wrong.  Sure, there's sometimes cool pictures of peoples' homes on there and if you really want to you can find out how much an acquaintance paid for their place, but really how much is that worth.  Certainly not a billion dollars?

 

GlobalOptions Group (GLOI) – What's Left In Liquidation

http://www.gurufocus.com/news/139749/globaloptions-group-gloi---whats-left-in-liquidation

Interesting article about the value of a liquidating stock.  There doesn't seem to be enough of a margin of safety here for me, but as I said it is interesting though.

 

David Einhorn Initiates Position In Huntington Ingalls Industries

http://www.gurufocus.com/news/139714/david-einhorn-initiates-position-in-huntington-ingalls-industries

Here's an interesting move.  I took a relatively close look at HII when it was spun-off and it struck me as a low-margin, slow-growth company that NOC loaded up with a ton of debt when it set it free.  I'd love to hear Einhorn's thoughts on the company.  He's pretty open about his positions so I'll have to keep my ear to the ground for his thoughts.  I really hate to say it, but I have to wonder if Einhorn has taken his eye off the ball lately with his infatuation with the Mets and other activities.  I know that his fund's 25% average annualized returns over the past decade plus beat the pants off of most people, but he has made a bunch of investments lately that have left me scratching my head.

 

Weyerhaeuser Sitting Pretty in Pacific Northwest

http://news.morningstar.com/articlenet/article.aspx?id=388772

Very detailed, interesting sum-of-the-parts analysis of Weyerhaeuser.

 

States Miss Pension Targets by 50% Even With Private Equity

http://www.bloomberg.com/news/2011-07-26/states-miss-pension-targets-by-50-with-private-equity-proving-not-enough.html

The state of Washington’s 3.92 percent return for the 10 years through June 30, 2010, after fees, was the best in a Bloomberg survey of state pensions with more than $20 billion in assets. That was nowhere close to the average yearly gains of as much as 8 percent that fund managers and public officials count on for meeting obligations to retirees.

Who in the !@#$%^&* is managing states' pensions and why are they so terrible?  I know a ton of people who aren't even professional money managers who have done better than this.  Granted they don't have to seal with the problems that are associated with managing such a large pool of money, but still...

 

American Midstream Opens Flat Post

http://online.wsj.com/article/BT-CO-20110727-712689.html

Interesting new MLP IPO with a 7.9% yield. 

 

19 Out of 25 Items Increased In Price During the Borders Liquidation Sale 

http://dealnews.com/features/dealnews-Price-Check-The-Borders-Liquidation-Sales-Dont-Offer-Deals/483863.html

As someone who even used to have a Border's credit card (I've since found a better deal) I'm sorry to see the company go.  I can't say that I'm all that surprised to see the company go given the fact that I haven't purchased a non-Kindle or non-iPad book in well over a year.  On a side note, liquidation sales are a complete joke, especially in the beginning.  The liquidators take advantage of people who see their big yellow signs and expect to get crazy deals.  I'm definitely going to pass on this sale.

 

BP breakup could unlock $100 bn, says JPMorgan

http://www.business-standard.com/india/news/bp-breakup-could-unlock-100-bn-says-jpmorgan/443882/

'Ludicrously Undervalued' BP Would Benefit from Split

http://www.ibtimes.com/articles/186498/20110725/bp-undervalued-conocophillips.htm

Self-explanatory

 

Wow, my laptop is running out of batteries.  I guess that's all the time I have for now.

I leave you with two these two pearls of wisdom from my trip:

If you are ever going away, make sure to try priceline.com.  I had never used it before this week and I managed to book two hotel rooms for over 60% off.  60%!  One was attached to Camden Yards in Baltimore.  I was able to actually watch the Orioles game from the balcony of hotel.  It was amazing.  The other hotel room was a block from the capitol in Washington DC.  I got both, 3.5 out of 4 star Hiltons, for only $100/night. 

Two, if you ever have someone picking a name for you, don't piss them off.  I was in the National Portrait Gallery in Washington yesterday and there was an interesting picture of Buffalo Bill Cody with some Native Americans.  As I was browsing the names of the people in the picture, I came across something hilarious.  Siting next to someone named "Kicking Bear" was a gentleman named "Young Man Who is Afraid of Horses."  HA, Classic.

Deej 

6 Comments – Post Your Own

#1) On July 28, 2011 at 10:29 PM, portefeuille (99.56) wrote:

Verizon Wireless to pay $10 bln to parents

http://www.reuters.com/article/2011/07/28/verizonwireless-dividend-idUSN1E76R25720110728

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#2) On July 28, 2011 at 10:30 PM, portefeuille (99.56) wrote:

Vodafone is one of my favourite "Düsseldorf companies" (see comment #4 here and comment #10 here) ...

Mannesmann-Vodafone-Hochhaus.

http://de.wikipedia.org/wiki/Vodafone-Hochhaus

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#3) On July 28, 2011 at 10:34 PM, portefeuille (99.56) wrote:

for the tourists, hehe ...

http://www.duesseldorf-tourismus.de/en/sights/architecture/mannesmann-building/

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#4) On July 28, 2011 at 10:37 PM, portefeuille (99.56) wrote:

http://caps.fool.com/Ticker/VOD.L.aspx

http://caps.fool.com/Ticker/VOD.aspx

http://caps.fool.com/tag/duesseldorf.aspx

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#5) On July 28, 2011 at 11:45 PM, awallejr (82.72) wrote:

Wow Deej you stirred Porte's blood heheh.

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#6) On August 03, 2011 at 1:46 PM, PhulishMortal (< 20) wrote:

Deej, make sure to give travelzoo.com a shot, too.  We have gotten several excellent deals through them, including the beach vacation from which we just returned.

 

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