Illuminati Investments
Long/short equity, value, special situations, contrarian

Buy Axiall As Short-Term Issues Temporarily Drag Down Earnings

I recently finished reading the book "You Can Be A Stock Market Genius," and while it suffers from an unfortunate title that makes it sound like it might have been written by Jordan Belfort of "The Wolf Of Wall Street" fame rather than by noted value investor Joel Greenblatt of the wildly successful hedge fund Gotham Capital, it does offer solid advice on how to benefit from unusual situations that can unlock value, most notably spin-offs and mergers.

I recently uncovered a company that happens to meet both these criteria, and while the spin-off and merger was completed a while ago, temporary events have depressed the value of the resulting company and prevented it from capitalizing on the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details