Sketch notes on an article by Wexboy.
top of heap for catalysts. usually announced after the company has sold majority of assets. final asset value usually highly certain. timeframe 6m – 2 yrs. directors likely to be conservative, so any surprises in asset value should be to upside. very attractive IRRs.
liquidation stocks normally delist – not a problem if your analysis is correct
Negatives: wide spread/high offer price will reduce return.
plug "liquidate" or "liquidation" into Investegate.
an extended form of liquidation. majority of assets still not sold. timeframe 1 yr -3 yrs. expect asset values to change radically over time – usually downwards
look for the words "capital return" or "return of capital", rather than "dividend", "distribution" or "special dividend". the former is subject to CGT – which is better – whilst the latter to income tax.
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