Yesterday I finally plucked up the courage to buy a tiny holding in NASDAQ:CSAL (Communications Sales & Leasing), as part of my foray into spinoffs. Buying shares in US spinoffs can be a bit fiddly, and I admit that I could have timed things better and bought in at a better price. My purchase price was $29.82 (before expenses).
It was a bit difficult to see a value case for it, as it didn’t necessarily look cheap. However, I looked at their credit rating, and I think that their expected annual dividend of $2.40 per share is legit. This would give a yield far above most REITs, so I decided to punt on it.
As ever, I’m a complete novice at spinoffs, so there is plenty of scope for me to have made a serious miscalculation.
We shall see.