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.

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