Chroma Investing

Value Investing for beginning & small time investors and the value investing strategies of Graham & Klarman

Spin offs – Good for Small Time Investors?

For the small time investor, or someone just beginning to invest for themselves, you have to remember to look to see where you have an advantage over other participants in the stock market. Odd lot purchases like the Zerba Systems (ZRBA) purchase are a good start. No mutual fund or hedge fund will waste their time with it, too small of a profit.

What other opportunities are there? The next type of special situation worth looking into are spin-offs. A spin off is when a company decides to split off a subsidiary or division and distribute the stock to its shareholders.

Special Situations – What are they?

Special Situations, or Workouts as Warren Buffett likes to call them are what they sound like, out of the ordinary situations for a stock that may be profitable to a savvy investor. Joel Greenblatt wrote You can be stock Market Genius, which specifically discusses special situations. Special situations include such tactics as buying spin-offs, securities in bankrupt companies, rights offerings, re-caps, odd lot purchases. Not all of these are appropriate for Beginning or small time investors or beginning investors. I will highlight a few of the special situations that are worth looking at over the next day or two.

ZRBA – A Special Situation for the Small Time Investor

Purchased 249 shares of ZRBA, a special situation that is well suited to small time investors.

Sunday Top 3 Investing links

One of the best sources of information for the beginning investor is other blogs and internet sites. Some blogs do a best on the internet. Maybe I will do that at some point. First you need to know about some great websites and blogs. On Sundays I will roll out a few of my favorites. […]

The Marcroeconomic Environment – for the beginning investor

A brief discussion of macroeconomics and its effect on your investments.

Financial Statements for Beginners – The Balance Sheet

A blog about the balance sheet for beginners. We used the simplified version provided by Morningstar. We look at VaxGen Inc. (VXGN) the Net Net stock we purchased last week.

Financial Statements for Beginning Investors – Cash Flow Statement

Yesterday I discussed the first of three acts of a companies Financial Statements.Income Statements for beginning investors. Today Act 2, Cash Flows. And we will explore it in all its breathless glory. Once again we will utilize the cash flow from Morningstar for VaxGen Inc. (VXGN) to save ourselves the difficulty of sifting through the […]

Financial Statements for Beginning Investors – The Income Statement

In the drama that is the Financial Statements of a Company, the financial information can be broken down into three scillintillating acts. Act One is the Income statement. It contains what you would expect. I have liberated an example from Morningstar of what VXGN‘s income statement looks like. I have made it big so you […]

Getting Easy to Read Financial Statements for a Company

Perhaps you took my advice in yesterdays post about using the Graham Investor NCAV (Net Net) screener. What do you do with all those names? I start with the best discount to Net Current Asset Value. The bigger the discount, the bigger the theoretical Margin of safety. But when you are swimming in these waters, […]

A Screener for Net Net Stocks

The first hurdle you face as a value investor, is finding the information you need to make profitable investments.¬† How do you find¬† Companies to invest in? Since we are exploring the ins and outs of the VXGN buy from last week we will explore gathering information for a Net Net Stock. There are a […]

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