Keeping this short.
Bought into another low risk, high probability special situation in SPGZ thanks to a contributor on the Value Forum.
This is a reverse split special situation.
Partners Group provides capital for Taxfix, Litera
Partners Group Private Equity gained in May. The net asset value for Class I rose 3.5%, while the net asset value for Class A grew 3.4%. The total fund size increased to $5.6 billion. For the first five months of the year, Class A is down 4.4%, while Class I is down 4.2%. Q1 2020 Read More
Total return will be around 8%, but this one looks like another no brainer.
Full details can be found in the latest proxy.
As a result of the reverse stock split, each holder of record of fewer than 1,000 shares immediately before the effective date will receive cash in the amount of $0.65 (subject to any applicable U.S. federal, state and local withholding tax), without interest, per pre-split share and will no longer be a stockholder of the Company. – SEC Filing
To make the most of this, you need to own 999 shares to be sure to get cashed out.
From the document, insiders are for the plan. Reading up on how everything that led to this reverse merger, I don’t see it falling through. The difficult and more complex spinoff and transactions already occurred in March this year, so this one should be a breeze to complete.
Very low volume stock though. Requires patience to buy, but not much time to buy since the date of the meeting to approve this is May 12.
NuPathe – Final Update Towards a 377% Return
One last update on the Nupathe special situation.
If you bought the stock, you should have received $3.65 cash for each share and hold the remaining stub.
Remember that the stub is not tradable. If NuPathe’s migraine patch flops, the position is dead. But I see the initial sales milestone figure as a low hurdle.
But who knows, I’ve been wrong before.
It will take at least 3 years before we know.
But a low risk chance for at least a 377% gain in 3+ years is a bet I’ll take every single time.
For future questions and discussions on NuPathe Inc (NASDAQ:PATH), use this forum thread.
This post was first published at old school value.
You can read the original blog post here New Low Risk Special Situation Alert and NuPathe Update.