3 M&A Targets, Special Dividend, and Expert Market Bargains

$1 for $0.50 for the days ahead.

Dawn of A New Year

We’re just days away from January so I want to offer you a preview of coming attractions for StW Special Purpose Research. Here’s what’s in store.

• An over 10% return of capital leaving this investment trading around 70% of a likely price as an acquisition target.
• A family-dominated business that presented itself to sell-side analysts for the first time this month with research initiations coming in January.
• An Expert Market stock of a company that has begun listing its assets to monetize a portfolio. It trades at about 15% of its net asset value due to a recently resolved battle for control.
• A public allocator trading at around 80% of net asset value with assets in large cap US growth stocks. It is my favorite way to get discounted shares in this booming category.
• A private equity controlled Expert Market stock trading at 76% of tangible book value. They dividended out 40% of their capital raise so far within a few years and will continue to distribute a double digit amount of capital per year until they monetize their investment.
• A second investment by this same private equity firm at 78% of tangible book value.
• An investment trading at under 60% of its total equity per common share with a new plan to clean up its balance sheet in a way that will reward common shareholders.
• After profiting from one major exit in 2024, I expect another three in 2025. Anticipated regulatory changes are likely to bring an M&A boom. Two of the upcoming examples are in California.