Value investing · Course 36 of 39 · The practice
Seven more situations
Liquidations, tracking stocks, post-bankruptcy equities, Dutch auctions, blank-cheque trusts, activist filings and appraisal rights, each on a closed real case.
For a reader who has met spin-offs, tender offers and merger arbitrage and now wants the situations that come with their own documents. Each of these is a corporate event where the ordinary ratios stop describing anything and the terms of an instrument decide what a holder owns.
After this course you can read a statement of net assets in liquidation and find the residual to common, say what a tracking stock does and does not entitle you to, find the share count and the accounting basis of a company that has left bankruptcy, work the mechanics of an odd-lot tender and a modified Dutch auction, count the dilution inside a blank-cheque company's trust, say what a Schedule 13D commits its filer to, and describe what a dissenting shareholder may ask a court to do.
Every lesson uses one real, closed situation, with the filing named. Nothing here is live and nothing here is pending. It assumes Special situations and Credit for equity investors.
The method, not the running of it
Seven more situations is 7 lessons on running the whole method on one company. Running it is the part that only happens against real filings, on a real date, and this course has none of yours. It also cannot tell you the day one of your reasons stops being true, which is the part that matters after you have bought.
See our methodology for how the product reads a filing and what it refuses to compute.