AboutSincerity towards wealth creation
Special opportunities investment can take many forms and involve a number of asset classes. They often arise from breaking news stories or rumours of news about to break. They may concern spinoffs, tender offers, mergers, acquisitions, bankruptcy, litigation, capital structure dislocations, shareholder activism, stock buybacks, spin-offs, mergers, acquisitions, business consolidations, liquidations, reorganizations, bankruptcies, recapitalizations, share buy-backs, hostile takeover-bids, changes in the benchmark or index composition, sale or purchase of assets, discrepancies in the value of share classes, agreements, legal dispute & any other event that might affect a company's short-term prospects.
To this end, analysts carry out thorough research on the operating and financial profiles of companies. It is a subjective and creative task that relies on the analyst’s talent and calls for a great experience. All investment decisions rest on a bottom-up analysis, which puts the burden of emphasis on fundamental analysis and a good knowledge of industrial sectors.
Spin-Offs & Demergers
Mergers And Acquisitions (M&A)
Companies frequently use acquisitions as a long-term strategy for growing a business. The merger and acquisition (M&A) activity is often the hallmark of a mature player in a mature industry that is looking for new growth. But lately, acquisitions have also been used as an incubation centre or to expand the company’s offerings. On a special opportunities front, these M&A deals can lead to some healthy and quick gains for investors who recognize these opportunities.
- Profits develop independently of the trend of the securities market.
- Risks are at a minimum (reflecting prior knowledge of anticipated profit).
- Corporate action is in the development stage.
- The securities (stocks, bonds) are undervalued.
- Information is available inviting comprehensive analysis.”