Diary

I'm scanning through a thread on TMF called "Who on earth would put 75% in an insurer?", where Stephen Bland (aka Pyad) is running a value portfolio consisting of a 72% position in Aviva, which he referred to as underweight. I don't want to revisit the whole concentration/diversification thing again, though.

eventdriven wrote on 12-Mar-2011:

technicals aren't limited to the bond markets. They occur in equities too: forced selling (buying) when a company leaves (joins) an index; post-bankruptcy "orphan" securities; companies awaiting material court decisions; spin-offs; rights issues; merger securities. These all create supply and demand technicals that will move price despite it not being linked to the underlying investment case. You're likely to get far more out of understanding these equities technicals than attempting to learn an entirely new asset class from scratch.

Spinoffs and rights issues are my core investment strategies; best bet is to read the book "You can be a stock market genius" by Joel Greenblatt (referenced previously).

But if you go here: http://www.spinoffadvisors.com/articles/spinoffs101.htm
Scroll down to the "Why Spin-Offs Can Be Misvalued?" section and read it over and over again.

(I've never before been to that website btw, I just found it with a google search of "spinoff investing")