Gamble of the day: A spin-off pharma

There are plenty of reasons why investors should worry about this spin-off pharmaceutical firm, says Phil Oakley. But it's all in the price.

In Joel Greenblatt's book, You Can be a Stock Market Genius, one of the ways he suggests that private investors can make money is to buy the shares of spin-offs. These are often smaller companies that have been cast aside by a larger parent company.

Spin-offs can be lucrative investments, says Greenblatt, because they tend to be ignored by professionals, who own larger companies. This means they often trade at cheap valuations, making them ideal for bargain hunters.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.