8. Kris Rymer of Safe Harbor Stocks on Amentum (AMTM) and Magnera (MAGN)

We're on the podcast today, of course, because I talk about spinoffs and you invest in spinoffs.

So I would love to hear a little bit about how you think about spinoffs, what you look for, some of the work that you like to do before evaluating whether you decide whether or not to invest in a spinoff.

Yeah, great question.

And I want to give a little shout out to your site, too, because, you know, in the past, I really, you know, I do use that sometimes as a resource to help things I may miss, things that are upcoming or things that have been completed.

So appreciate the work that you're doing with the site and obviously with the podcast.

But, yeah, I, you know, spinoffs and a little bit on IPOs, too, but that's sort of a little bit separate.

But sticking with spinoffs, they've been a real challenge.

I don't want to say a specialty, but just something that's really helpful in my wheelhouse that I use where I've seen some excess alpha I can generate for myself as a personal full-time investor.

And I think there's a couple of things.

There's a lot of content out there.

Probably a lot of your viewers already know a lot about the benefits and things.

But obviously, just to break it down from my perspective, There's a real structural imbalance, obviously, that's inherent in the spinoffs, whether it's these reverse Morse trusts and things like that.

But you have some of these big companies, they spinoff a really good cash flow and profitable division.

And When those shares are spun off, you have a lot of people, institutional investors that have certain mandates and they can't hold those, right? They sell them off.

There's number two, there's a lack of really good or sometimes of any analyst coverage and any estimates, company guidance.

You have a long you know, a form 10 or a certain prospectus that you have to go through.

There's these, you know, different synergies and mergers.

So I feel like there's, you know, for people that really know, and there's a lot of people like that, probably better than me, even that, I know, but that can really dive into some of those filings to understand and see a lot of the things that really you won't see on Yahoo Finance or, you know, Koi Fin or something like that, that we tend to use.

So because it's just not there.

Momentum is a perfect example.

You know, the metrics are just way out of whack.

You know, they were, you know, last quarter just because, you know, so that's like case in point there.

Um, so, so those are a couple of the ideas really, uh, that I look at and then, you know, I almost, there's like a sweet spot really I've noticed, and it's not the case with every spinoff.

Um, but you know, one to five, six, seven months out, right.

You sometimes see a big dip.