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| Name | Making Money with Special Situation Investing | Demergers | Spin-Offs | M&A | Arbitrage | ETMONEY |
| Video Uploader | Video From ET Money |
| Upload Date | This Video Uploaded At 19-09-2021 10:45:02 |
| Video Discription | For an investor, the phrase “special situation” is likely to suggest something unique something opportunistic, and most importantly, something that is likely to be exceedingly profitable. In this video, we shall look under the hood and try to get a better hang on what exactly is a “special situation” Topics Covered: 00:53 Introduction 02:36 SPIN-OFFS & DEMERGERS 04:45 MERGERS AND ACQUISITIONS (M&A) 07:49 CLOSE ENDED MUTUAL FUND ARBITRAGE 09:13 WARRANTS ARBITRAGE 11:48 ASSET SALES 14:13 ETMONEY OPINION 👉 Resources ► 📚 How to Profit from Special Situations in the Stock Market by Maurece Schiller : https://amzn.to/3zcQDmV ► Tata Steel - https://bit.ly/39eY1C1 ► Should you invest in closed-ended mutual funds via secondary market? https://bit.ly/3AjFpMV ► Podcast - Joel Greenblatt discusses Relative Value Investing with Barry Ritholtz - https://bloom.bg/3lxG3Aj A special situation in investing is an unusual event related to stock or any other asset that is seen by investors as a buying opportunity. The unusual & special part comes in when companies involve themselves in certain financial transactions that are seen to be creating additional value to their shareholders. These financial transactions include things like raising capital, changes in the corporate structure, mergers, and acquisitions, reorganization, spin-offs, delisting, buybacks, asset sales, etc. In essence, special situations investing have 3 defining characteristics: 1. The opportunities generally emerge out of corporate actions 2. The estimated and expected risk one takes should be on the lower side 3. A majority of the facts that one needs are already available This information can come in the form of an announcement by the company to the exchange, news releases, company notices, investor presentations, etc. 👉 SPIN-OFFS & DEMERGERS Spin-offs and demergers involve the transfer of some assets and liabilities of a company’s business division into a separate entity. As a consequence, the shareholders of the parent company receive shares in this new entity, and as is often the case the combined value of shares i.e. the shares in the parent company plus the spin-off unit is greater than the earlier situation. This process is often called the unlocking of value 👉 MERGERS AND ACQUISITIONS (M&A) Companies frequently use acquisitions as a long-term strategy for growing a business. This M&A activity is often the hallmark of a matured player in a matured industry that is looking for new growth. On a special situation front, these M&A deals can lead to some healthy and quick gains for investors who recognize these opportunities. 👉 CLOSE-ENDED MUTUAL FUND ARBITRAGE In its simplest construct, a close-ended mutual fund scheme can be redeemed with the fund house only after its maturity which typically ranges from 3 to 7 years. However, to provide an exit route to these investors, the SEBI does allow an investor to sell units in a close-ended scheme through the NSE or BSE’s mutual fund platform. Now since the sellers of these units are a bit desperate for liquidity, several closed-ended funds trade at a discount to their NAV which often ranges from 5 to 15%. 👉 WARRANTS ARBITRAGE A stock warrant or an equity warrant is an instrument that is issued by a company and gives the holder of that warrant the right to buy shares in the company at a pre-determined price and within a stipulated time frame. Warrants can be an excellent way to make quick profits at minimal risk. These are transferable and can be purchased from the secondary market through your trading broker 👉 ASSET SALES Many companies buy and sell business divisions from time to time as part of their operational restructuring process. The effect of selling a division is that the offloading company often receives a big pile of cash .. which it can then partially or fully distribute to the shareholders as a special dividend It’s important for a special situation investor to - Build out all possible scenarios - Understand the payout in each case - The investor needs to continue collecting evidence to have a better perspective of what is possible, what is plausible, and what is truly probable #ETMONEY #SpecialSituationinvesting #investing 👉 To invest in Direct Plans of top Mutual Funds for free, download the ETMONEY app: https://etmoney.onelink.me/unJQ/5ca1ae3b 👉Read more such informative articles at https://www.etmoney.com/blog 👉 Follow us on: ► Facebook: https://www.facebook.com/ETMONEY/ ► Twitter: https://twitter.com/etmoney ► Instagram: https://www.instagram.com/etmoney_official/ ► LinkedIn: https://www.linkedin.com/company/et_money/ |
| Category | Education |
| Tags | What is Special Situation Investing ? | How to Make Money Using this | ETMONEY | stock market | share market | mutual fund | SPIN-OFFS & DEMERGERS | ASSET SALES | MERGERS AND ACQUISITIONS (M&A) | CLOSE-ENDED MUTUAL FUND ARBITRAGE | WARRANTS ARBITRAGE | value investing | investing | Special Situations Investing#5 | special situations equity investing#12 | Joel Greenblatt | etmoney latest video |
