Investing in spinoffs-- profitable.

Example: https://www.youtube.com/watch?v=73zjEN98FFc  my youtube channel

There is a lot more information than the little given here. I need to gather my thoughts. I have very specific information.

Look at Form 10-12B https://sec.report/Form/10-12B#more

Shows you all the recent spinoffs. Spinoffs outperform the market in general. Look for insider buying after the spinoff and high management ownership and same management running the business. That means they are comfortable owning the business. Usually in a spinoff there is indiscriminate selling by institutions because it doesn't meet their mandate to hold the stock (too little market cap, different industry, higher volatility, etc.. others.) So there is significant selling pressure in the beginning of the spinoff and not enough liquidity to capture it fast enough**. Therefore stock price is depressed temporarily. Capture it. It doesn't stay long.

What you want to look for is smaller cap companies and companies with lower trading volume and because small volume spikes itself will boost stock price. Illiquidity has its perks. Often times microcaps have a boost in stock price after the initial sell-off because illiquidity is more pronounced and when selling the bid-ask spread is horrible.

Some names that I used to own:

CNXC

VNT

AOUT

Best one is CNXC in my opinion. I am not holding any of these currently. I am 100% cash. This is not investment advice. 

See stockspinoffinvesting.com for more information. Free.