Case Study: Spinoff, Tender, Acquisitions, NOLs, and Uplisting at ALJ Regional Holdings
Steven Kiel contributed a case study on ALJ Regional Holdings to “How to Profit from Special Situations in the Stock Market” by Maurece Schiller, a reprint of the original 1959 classic that was updated by Tom Jacobs and re-released in December 2017. View the case study here.
ALJ investors had multiple opportunities over a four-year period to employ special situation strategies—they didn’t have to be early or first. The CEO—the largest shareholder—was aligned with us, and the existence of substantial NOLs helped to telegraph the direction the company was headed. Purchasing shares for less than net cash prior to ALJ’s first acquisition was among the least risky opportunities I have come across in my career.
From there, cheap income statement valuations and additional company-specific items gave investors several chances to get involved, or re-involved, in the stock.