| Author | Message | ||
     Gudivada04 Bewarse Legend Username: Gudivada04 Post Number: 45400 Registered: 09-2004 Rating: N/A |
Portfolio Update: Spinoff Alert Image removed by sender. Turn Your Images On Dear Lifetime Profits Reader, If you own shares of Verint Systems Inc. (Nasdaq: VRNT) … congratulations! Last night, Verint completed its spinoff of Cognyte Software Ltd. (Nasdaq: CGNT) to shareholders. Now, we added Verint to the portfolio — on August 19, 2020 at $45.58 per share — for two reasons… No. 1: It’s a very good business that was selling for a bargain price. Verint is a global analytics company that provides software and hardware for security, surveillance and business intelligence. It serves 85% of the Fortune 100 companies and over 10,000 organizations. No. 2: Verint was planning on spinning off their Cyber Intelligence Solutions (CIS) business — to be named Cognyte Software — as an independent company on February 1, 2021. You see, when it comes to pricing spinoffs, Wall Street doesn’t do such a great job... And my research was telling me that the stock price was not taking the spinoff — or how good a business Verint is — into account. Yesterday, Verint closed at $77.44 per share. After the close, the company distributed one Cognyte share for every Verint share. For example, if you own 100 shares of Verint, you should be receiving 100 shares of Cognyte in your brokerage account in a day or two. You don’t need to do anything to get them — those shares are free. Now, as I write this, the price of Verint shares has “dropped” to $50 per share. Don’t be alarmed! Verint shares didn’t suddenly lose 35% of their value overnight. This drop takes the spinoff of Cognyte shares into consideration. By the time I send out my Thursday update, those Cognyte shares should be in your account … so, that’s when I’ll catch you up on performance. I just wanted to get this to you before then and congratulate you on what’s looking like a great trade! This is what I got just now |