Hope you are doing well.
On Monday, we released our latest Special situation opportunity for our Alpha + members and would like to share with you details on the same.
As you might be aware, special situations constitute opportunities arising out of announced corporate transactions such as De-listing, Open offers, rights issue, de-merger, bankruptcy restructurings, etc.
In markets, nothing is risk free; however, if carefully analysed, one can always participate in opportunities with low downside and a potential for good upside.
At the same time, the holding period in general for such opportunities is 3-5 months.
The idea behind participating in special situations is to generate additional returns on the portfolio by investing surplus cash in such opportunities.
The latest special situation recommendation is a slightly different kind of opportunity in the sense we haven’t participated in a similar corporate action before.
Key points about the latest special situation recommendation:
- Open for investment till Thursday, 12th Jan’23
- Short duration opportunity, in the sense, bulk of the investment made can be sold by the next week
- Loss probability seems low; stock will have to correct more than 33% for investors to start losing money
- Upside potential – It depends on how one calculates the returns because the initial major investment will only be for few days and there will be a small residual investment for a month or so.
It’s always fun to analyse special situations and take calculated risks.