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Jason Knapp

Buy SPAC Warrants on the Cheap During Periods of Market Volatility...Special Situation Investing News - 8/26/2015

The stock market sure has been a wild ride over the past week.  On Monday I talked about how I have been using the recent weakness to buy shares of REITs and MLPs that sport sustainable double-digit yields.  Today I am going to talk about the other thing that I have been buying, Special Purpose Acquisition Company aka SPAC warrants.

Keep an eye on SPAC warrants during market selloffs.  I own both AgroFresh $AGFSW and Lindblad Expeditions $LINDW warrants and they tend to fall off of a cliff during times of significant volatility.  I have been able to scoop up both at absurdly cheap levels at points lately.  Take a look at these charts.  Not only have the prices of these warrants dropped tremendously over the past several months:

but they also experience "Flash Crash"-like volatility that can enable observant investors to pick up shares even cheaper:

While I own both, I personally like the AgroFresh warrants better than Lindblad for two reasons.  One, I like AgroFresh's current business and potential to become a platform better.  And Two its 2019 warrants are much longer dated than Lindblad's 2016 warrants, making them safer should we experience a prolonged period of market weakness.

So if you like the home run potential that certain SPAC warrants provide, keep an eye on their price movement or set some cheap limit orders and you may be able to get some at amazing prices.

And now for the rest of the Special Situation News:


AgroFresh Solutions names Loebl as permanent CFO



The new spinoff ETF Market Vectors Global Spin-Off ETF $SPUN is off to a rough start -14% and underperforming S&P 500.

Macy’s Faces Thorny Question: What to Do With Flagship Herald Square Building?

Beaten up B/E Aerospace $BEAV spinoff KLX Inc. $KLXI +8% on earnings beat.

Is It Time For Intel To Spin Off The Fabs?

BHP-Billiton spin-off South32 to cut costs and capital expenditure


Yield Cos.

The Great Yieldco S&*tshow of 2015 | Nemo's Blog


Activist Investors

Why This Small Victory Against Short Sellers Might Be a Big Deal for Biotech Companies

Major Activists 13F Insights

What An Activist Investing Bubble Looks Like

Stocks that could be activist targets

Omega Board Has "Forfeited The Right" To Manage The Company

Basswood Capital Takes Stake In Astoria Financial, May Push For Merger $AF


Whale Watching

Buy & Hold Investors Were Hit Hard Yesterday. Also, on the carnage at Longleaf.

Long leaf is down -16.2% YTD. Hedge funds put brave face on stocks turmoil, some see bargains.

 Has David Einhorn Lost His Edge?

Tracking Alex Roepers' Atlantic Investment Management Portfolio - Q2 2015 Update


Merger Arb

FT: Funds bet on Shell-BG deal as oil price slides

Exelon $6.8 Billion Pepco Deal in Doubt on D.C.’s Rejection

Perrigo CEO Still Pursuing Deals Amid Takeover Feud With Mylan

Syngenta seen opening up after source says Monsanto boosts offer

ValueAct’s Ubben Confident in Haliburton’s Deal for Baker Hughes


Investment Write-Ups

Rayonier's Loss, But Whose Gain?

Rayonier Advanced Materials: 50% Cheaper In One Day, But Look Before You Leap

Bluerock Residential Growth REIT: A 10% Yielding Small-Cap REIT

TeleCommunication Systems, Inc. $TSYS Write-up by Troy Marchand

Dane Capital Management Fund July 2015 Letter: Long Lindblad & MDV

Other Investment News

Interesting crack spread chart. Good news for refiners.

MLP Summary: Pointe Capital Management's Dan Willard Discusses Black Monday

Catching Falling Knives With General Electric, Starbucks, and Colgate

We knew that this was coming. Transocean board seeks to suspend dividend

Solera Holdings Said to Approach Buyout Firms Over Possible Sale

Hardinge Announces Exploration of Strategic Alternatives to Enhance Shareholder Value

 The Fed hike could LOWER interest rates

China's economic slide is going to make it hard for inflation to rise, and for the Fed to raise rates much

"the S&P has gone 47 months without a decline of 10% or more, versus an average of 18 months”


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