Extendicare REIT (NASDAQOTH:EXETF)

CAPS Rating: 5 out of 5

Recs

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Player Avatar SlothropsMonkey (91.28) Submitted: 2/23/2014 3:55:19 PM : Outperform Start Price: $6.03 EXETF Score: +15.40

Corporate shenanigans can obscure––or reveal, depending––lots of hidden value. In this case, Extendicare is really two businesses stuck together as one. But one of them, the Canadian half, is much healthier than the American half. When split, a corporate move that is supposedly imminent, the Canadian half will look financially much healthier, and the American half will appear hugely undervalued because of its real-estate value. This is a classic spin-off right out of Joel Greenblatt's book You Can Be A Stock Market Genius. When the corporate ducks align and the two are split, the pop in the stock will prolly be over 100%. And there's even a monthly 0.04 cent dividend while we wait. That's free bananas folks!

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