special situations investing

Thursday, June 01, 2006

Security Capital Corp/ Special Dividend of $9

and something..

all this to distribute net proceeds from Primrose Sale to Shareholders.

The WC Holdings biz is still up for sale.. stock price moved up nicely..

the total distribution will be 60 million sometime in June (read press release of SCC)

giving the remaining biz amarket cap of 140 million.

the area they have been consolidating is hot, but how hot, i dont, really know.

my intuitive guess would have been that all the value of this company lies in the Primrose biz.. now it appears to be different.. WC holdings is worth in the market twice as much as Primrose.

the buyers of wC will tell us what it is really worth..

considering that this name was initiated at 9 buck (on the yahoo Special Situations Profits Blog), and it trades now at 28 bucks, we must have done somethign right..

question is, where is the next such target... this situation as a reminder took a good one and a half if not two years to mature. from the moment they had the first management bid, to the moment fist asset sale and special dividend was declared really 2 years went by..

considering that managemeetns inside bid was only liek 10 bucks per share, look at the value that has been created here..

long term holders will chear. as for the short term arbitrageurs, they dont even know what they are buying into.