I read that book this spring, and in June 2024, I made a pre-spin-off purchase. The company, named Gaming Innovation Group (#GIG) before the split, was trading on the Oslo Stock Exchange and NASDAQ Stockholm Exchange. It had two divisions: GIG Media and GIG Platform & Sportsbook. The company split on October 1, 2024. The GIG Media division, which was more profitable, was renamed Gentoo Media (#G2M). The GIG Platform & Sportsbook division is now GIG Software SDB (#GIG-SDB). The latter retained the majority of the board of directors, indicating strong alignment and a vested interest ("skin in the game"). Meanwhile, Gentoo Media remains profitable. Both stocks have declined since the split, but I believe they have huge potential based on the estimated industry CAGR, company performance metrics, and other indicators, if you would like to take a closer look.
I can see parallels to the situation with WBD today. Looks likely they're going to spin-off the "toxic" networks business from the desirable streaming and studios business.
Institutional selling does indeed create opportunities. The checklist approach to spinoffs mirrors what I've been talking about for a while: the best opportunities come from having clear criteria and patience to wait for the right setup, not from chasing every deal that comes along.
Interesting, I have never heard of analysis done on Spinoffs, still it is likely they won't initially be a Positive Net Cash Flow business, which is my preferred investment position.
Data shows that even investing in the parent (in the case of Marriott, the good business) is the cash generating one and can be worthwhile. It really depends on each specific situation. The basic idea is the market has some difficulty assigning the correct value to the 2 companies.
I read that book this spring, and in June 2024, I made a pre-spin-off purchase. The company, named Gaming Innovation Group (#GIG) before the split, was trading on the Oslo Stock Exchange and NASDAQ Stockholm Exchange. It had two divisions: GIG Media and GIG Platform & Sportsbook. The company split on October 1, 2024. The GIG Media division, which was more profitable, was renamed Gentoo Media (#G2M). The GIG Platform & Sportsbook division is now GIG Software SDB (#GIG-SDB). The latter retained the majority of the board of directors, indicating strong alignment and a vested interest ("skin in the game"). Meanwhile, Gentoo Media remains profitable. Both stocks have declined since the split, but I believe they have huge potential based on the estimated industry CAGR, company performance metrics, and other indicators, if you would like to take a closer look.
I can see parallels to the situation with WBD today. Looks likely they're going to spin-off the "toxic" networks business from the desirable streaming and studios business.
Any idea what the size of the spin-off would be in possible market cap? It's not so clear from the annual report.
I'd say $10bn+ even if they saddle it with all the debt, but could get a lot smaller if investors dump it en mass.
Institutional selling does indeed create opportunities. The checklist approach to spinoffs mirrors what I've been talking about for a while: the best opportunities come from having clear criteria and patience to wait for the right setup, not from chasing every deal that comes along.
Interesting, I have never heard of analysis done on Spinoffs, still it is likely they won't initially be a Positive Net Cash Flow business, which is my preferred investment position.
Data shows that even investing in the parent (in the case of Marriott, the good business) is the cash generating one and can be worthwhile. It really depends on each specific situation. The basic idea is the market has some difficulty assigning the correct value to the 2 companies.
Thank you and yes I have heard of this spinoff. Was there any institutional selling going on?