Global Spinoff List

Spinoff & Reorg Profiles is the world's only global spinoff investing research letter. It is delivered monthly.

Seeing where Compustat can't

Spinoffs can go unreported, or incorrectly reported, by major data services for weeks after they list. During that time, you cannot find them by screening Compustat, Reuters or any other fundamental data service -- no matter how cheap they may be. Where can you find recent spinoffs, quickly and exhaustively? Here.

Spend your time analyzing, not compiling

Spinoffs have for been shown for decades to outperform the market, even when chosen at random. Why has this edge not been competed away? Partly because unpromoted new issues take extra time to exhaustively find, track and understand.

The investment analyst's time is valuable. Spinoff & Reorg Profiles compiles a rich source of analytical material, in an area known to be attractive, while saving dozens of hours a month of initial discovery.

Each issue includes a list of over 100 recent and upcoming spinoffs worldwide, plus summary financial data for current spinoffs, as well as approximate capitalization. From this, you can instantly determine which companies fit your firm's investment charter, and focus attention there.

As a specialist in this arena, we cast a wider net. Did you follow Pretoria Portland Cement this year? How about Husqvarna AB last year? You wouldn't have found much on these in any SEC filing. We provide investment managers with analytical options far afield of the usual suspects.

Join for a month -- cancel anytime

Spinoff & Reorg expects to earn its keep every month. As a result, subscriptions are month-to-month, with no minimum commitment. You can join for just a month, and cancel or rejoin at any time, instantly.

Why no free trial?

This is not a retail investor newsletter. It confers an information edge that our institutional readers rely upon. To preserve this exclusivity, we never give recent issues to non-subscribers. This costs us business, but benefits readers.

About the author

William Mitchell was an analyst at hedge fund Strategy Capital before launching Spinoff & Reorg Profiles in 2004. His articles have appeared in the New York Times and the L.A. Business Journal, and he has been a panel speaker at the Caltech Enterprise Forum. He holds an MBA from the Stanford Graduate School of Business, a BS in Engineering and Applied Science from Caltech, a BA in physics from Reed College, and has passed the NASD 65.

Testimonial

Bonus material in every issue

In addition to our table of over 100 recent and imminent spinoffs, mostly US-listed, with record dates, trading symbols and capitalization range, we also include:

• Financial highlights and price ratios for recent and imminent spinoffs.
• Monthly stock selection, far outperforming the S&P 500 -- see below.
• Additional investment ideas in corporate reorganizations, including rights offerings, deregistrations, firms emerging from bankruptcy, large share repurchases, leveraged recaps, and insider buying.

Strong track record for stock selection

Each month, in addition to the spinoff research, the author offers one stock selection -- usually, but not always, spinoff-related. Below are the results from all monthly issues of Spinoff & Reorg (last calculated September 15, 2007).

Since inception:	All U.S. Spinoffs	Our Monthly Selections
Absolute 6-month return	7.3%	14% (30% CAGR)
S&P-relative 6m return	1.2%	8.3%
Standard deviation	32%	24%

A subscriber that simply invested in all U.S. spinoffs since June 2005, and held for 6 months, would have outperformed the S&P by almost 3% gross annualized (spreadsheet) -- similar to the conclusions of the 1994 Journal of Finance citation below.

Spinoff & Reorg picks did significantly better, outperforming the S&P by a mean 8.3% in the first 6 months after publication (spreadsheet) -- underscoring the benefit of active management in this arena. We achieved this with a simple strategy: find all spinoffs and buy the cheapest.

Academic evidence for spinoff returns

Predictability of Long-Term Spinoff Returns, Jrnl of Inv Mgt, 2004
The Spinoff and Merger Ex-Date Effects Journal of Finance, 1994
Restructuring through Spinoffs: the Stock Market Evidence Journal of Financial Economics, 1993

Sample issues of Spinoff & Reorg

Apr 2007 Freeport McMoran - 6-month gain of 65%
Mar 2007 Halliburton - 6-month gain 17%
Feb 2007 Qimonda - 6-month loss 12%
Jan 2007 Experian - 6-month gain 9%
Dec 2006 Omega Flex - 6-month gain 1%
Nov 2006 Idearc - 6-month gain 39%
Dec 2005 American Eagle Outfitters - 6-month gain of 47%
Sep 2005 - Excerpt - Discovery Holding Company - 6-month loss of 5% - 17-month gain of 9%
Jul 2005 - Excerpt - American Bank Holdings Rights Offering - 6-month gain of 22%
Jul 2005 - Excerpt - Hidden Insider Buying
Jun 2005 - Excerpt - Omega Flex Spinoff - 6-month gain of 49%
Jun 2005 - Excerpt - Profiting from Voluntary Deregistrations