The Investing for Beginners Podcast - Your Path to Financial Freedom

The Hidden Goldmine of Stock Spinoffs with Rich Howe

Feb 23, 2026
Guest
Rich Howe
Rich Howe, founder of Stock Spinoff Investing and spinoff specialist, explains why newly spun companies often trade at steep discounts. Short takes cover what spinoffs are and why parents split, the Index Fund Effect and forced selling, how to vet management and debt, and using Form 10s and AI tools to research these overlooked opportunities.
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INSIGHT

Why Spinoffs Unlock Value For Pure Plays

  • A spinoff is when a public company breaks into separate public companies to create simpler, more easily valued pure plays.
  • Rich Howe used Western Digital's NAND spin-off to show how splitting can unlock value when the remainco matches a direct comp like Seagate.
INSIGHT

Spinoff Market Has Outliers And More Competition

  • Spinoff investing has a historical edge because outlier winners more than offset losers, but the space has become more competitive over time.
  • Howe notes many spinoffs are low-quality microcaps, so focus on sizable, well-documented cases.
ANECDOTE

Thungela Spin-Off Turned Into A 20x Win

  • Rich Howe bought Thungela Resources after its Anglo American spin-off, noting it had no debt and a planned 25% cash-flow payout, implying a ~25% yield.
  • The stock later rose ~20x, but Howe sold early after being spooked by position size and volatility.
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