Spirit MTA REIT (SMTA)

Situation

Spirit MTA REIT was spun off from Spirit Capital (SRC) on June-1 and trades around ~$10 per share. Sell-side analysts had forecast that the share price would be around ~$10. Some market participants think it is very cheap.

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Full House Resorts (FLL)

Situation

After a long spell of mismanagement, Full House Resorts was taken over by Activists in 2014. They installed a management team led by Dan Lee who is regarded as a very good manager. Mario Gabelli mentioned FLL as his best micro cap idea in Dec 2016 on CNBC.

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Wyndham Worldwide Corp (WYN)

Situation

Wyndham Worldwide is spinning off its hotel management business separating its Vacation ownership and exchange business by Q2 2018. This can reduce some of the conglomerate discount in WYN.

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Spirit Realty Capital, Inc. (SRC)

Situation

Spirit Realty Capital, Inc. announced plan for a Leveraged Spin-Off in Aug-2017. Spirit intends to spin-off substantially all of its properties leased to Shopko and its assets that collateralize Master Trust 2014 (part of Spirit’s asset-backed securitization program, “Master Trust A”) into a separate, publicly traded REIT.

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Kingsway Financial Services (KFS)

Situation

Kingsway Financial Services survived a near-death experience and is now run by a well-regarded management team. KFS has the potential to compound at a high rate.

 

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BBX Capital Corporation (BBX)

Situation

BBX Capital is a conglomerate which will complete a partial IPO later in November. It could be a potential fifty cent dollar.

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Molson Coors Brewing Company (TAP)

Situation

Molson Coors is trading at 52 week low price. It appears to be trading at one of the lowest EV/EBITDA multiple amongst its peer group of other breweres.

 

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LSC Communications, Inc. (LKSD)

Situation

LSC Communications was spun off from RR Donnelley last year. The other spin at the same time, Donnelley Financial, was supposed to be the good business and LSC Communications was not so good. Its stock price has declined in half post spin-off.

 

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AMC Entertainment Holdings (AMC)

Situation

AMC declined by more than 50% this year. Last year was a record year for AMC but the box office has been weak this year. Wanda, a Chinese company, owns 58% of AMC, but 81% of voting rights. AMC has to sell down its stake in National Cinemedia (NCMI) which has also declined which could be from forced selling.

 

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STORE Capital Corporation (STOR)

Situation

STORE Capital Corporation, an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, announced that Berkshire Hathaway has invested $377 million in the company, representing 9.8% of total shares outstanding. In the transaction, STORE Capital issued 18.6 million shares of company stock in a private placement to a wholly owned subsidiary of Berkshire Hathaway at a price of $20.25 per share. Berkshire invested perhaps because they could not create the business themselves and they took 9.9% stake, the max allowed.

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