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...

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