Dark Side of the Street (Edition #70)
Turnaround Research Process, Top Movers, Insider Buying and More!
Welcome to the Dark Side of the Street! Here we shed light on the dark corners of the market. If you haven’t already, sign up below for weekly updates. If you’re new to special situations, see some of my learning resources on my substack home page to learn more! Feel free to reach out with any feedback.
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Thought of the Week
This week we will not be featuring a Turnaround Stock Story as I have not dove deeply into one stock this week. But rather, I have been gathering big-picture data for all the stocks that I will be studying. So this week, I will be sharing that process with you.
For me, I find that I need to start with the big picture and then get into all the intricate details. So I have taken the approach of obtaining data on all basic details for every situation and then diving into each individual situation. This way, I have a vague idea of what turnarounds look like, and I should be able to ask better questions when I get into the details.
As I discussed in a previous newsletter, data collection can be difficult. Especially for those who cannot afford a Bloomberg Terminal or S&P Capital IQ. I'm currently performing a fairly manual process using SEC filings to collect data. Although this seems tedious, I do feel more connected to the process. It also allows me to collect unique data points. In other words, my research will be customized to what I personally find important or interesting. I believe this is an advantage over other investors who rely on the same data points for their research.
With all of that said it is a boring process…. I hope to be able to dive into the weeds on a story next week.
Recent Insider Buying
Large Micro Cap Purchases
Top News of the Week
“Johnson & Johnson investors can soon swap their shares for Kenvue stock — here’s what you need to know” - By Annika Kim Constantino of CNBC
“Bed Bath & Beyond Shareholders to Recover Nothing Under Proposed Reorganization Plan” - By Alexander Gladstone of WSJ
Top Micro Cap Movers this Week
Top 10 Gainers
Top 10 Losers
Special Situation Watchlist
Activision Blizzard (ATVI -0.36%↓) - Risk Arbitrage
The spread between the buyout price ($95/share) and ATVI’s current trading price is now ~3%.
News Articles:
111, Inc. (YI) - Going Private Transaction
The non-binding offer has been upgraded from $3.61 to $3.66/share (see link for SEC filing)
The spread between the offer price and the current stock price is 9%
Albertsons Companies, Inc (ACI 0.00%↑) - Merger Arbitrage
The spread between the buyout price ($27.25/share) and the current trading price is now ~23%.
News Articles:
No new updates
*See links for the situation summary from prior editions
A little classic rock for ya this week. Enjoy!
See you next week!
- Dark Side of the Street