Jason Knapp
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MRV Communications Has Been a Huge Winner, And You Ain't Seen Nothin' Yet...Special Situation Investing News - 8/18/2015

Greetings and welcome to today's edition of the Special Situation Investing News. I've taken some lumps on my REIT and MLP investments lately - I'm right, eventually Mr Market will agree with me :) - so I decided to cheer myself up by talking about a winning investment that I recently made that I believe still has a ton of upside.

The company that I have done well with is called MRV Communications $MRVC. To say that this investment has been a winner would be an understatement.  Just take a look at this chart:

A three-month chart of $MRVC (blue) vs. the S&P 500 (red) (click to enlarge)

Probably my favorite Seeking Alpha author, Dane Capital Management, recently published a new article on the company.

MRV Communications: Expect 75% Upside, Potentially More In A Buyout

https://seekingalpha.com/pro/checkout/3447366?noti...

The piece is only available to Seeking Alpha Pro subscribers for the next day or two.  If you are one, make sure to read the piece.  If not, it's definitely worth your while to stop back after the embargo has been lifted.  

Here's the Cliff's Notes version of what's to like about MRV Communications: a successful activist investor, Raging Capital, has accumulated a massive 30% position in the company and is forcing changes, including selling its slow growth Network Integration business and rolling the proceeds as well as significant NOLs into significant share buybacks.

And now for the rest of the news:

Spinoffs

Ventas Completes Spin-off of Pure-Play Skilled Nursing REIT Care Capital Properties, Inc.

http://seekingalpha.com/pr/14432716-ventas-complet...

Ventas Completes Capital Care Properties Spinoff; Spin Set To Join S&P Midcap 400

http://www.stockspinoffs.com/2015/08/18/ventas-com...

SPACs

SPAC Weekly 8/17: Special Purpose Acquisition Corps 101

http://www.valuewalk.com/2015/08/spac-investments/

AgroFresh Solutions Provides Financial Results for the Three and Six Months Ended June 30, 2015

http://www.businesswire.com/news/home/201508180055...

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Merger Arb

Now this potential offer for $WMB is interesting. It includes $WPZ and while it's smaller, $SE is a much better company than $ETE. Spectra bidding for the entirety of Williams Cos - sources.

http://www.reuters.com/article/2015/08/14/us-willi...

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Activist Investors

Hedge funds add to pressure on Starwood Hotels & Resorts

http://www.ft.com/intl/cms/s/0/85ce566a-4433-11e5-...

John Paulson's hedge fund buys Starwood Hotels stake

http://www.crainsnewyork.com/article/20150817/REAL...

Activist Lakestreet Capital Partners Target UK's Menzies sets out case for keeping company united

http://www.reuters.com/article/2015/08/18/john-men...

This Week's Barron's 13D Column:

http://online.barrons.com/articles/pershing-square...

Dan Loeb's latest Japanese bet

http://tmfdeej.whotrades.com/blog/43897939470

ValueAct falls into the Rolls-Royce trap

http://tmfdeej.whotrades.com/blog/43674866621

Bulldog Investors Beaten Down By Hill International

http://tmfdeej.whotrades.com/blog/43805542148

Nelson Peltz Latest Target

http://tmfdeej.whotrades.com/blog/43920906393

Bill Ackman Follies In Pharma

http://tmfdeej.whotrades.com/blog/43121012319

Engaged Capital active on Boulder Brands

http://tmfdeej.whotrades.com/blog/43451793772

Bill Ackman And Nelson Peltz Together Again

http://tmfdeej.whotrades.com/blog/43128667960

Ultratech Now An Activist Target

http://tmfdeej.whotrades.com/blog/43028614997

Wynnefield Active At Omega Protein

http://tmfdeej.whotrades.com/blog/43359396450

MagnaChip Semiconductor now has two activists

http://tmfdeej.whotrades.com/blog/43228720923

Carl Icahn Takes Another Stab At Energy With Cheniere Energy

http://seekingalpha.com/article/3448706-carl-icahn...

13F Insights From 2Q 2015

http://activiststocks.com/blog/hedge-fund-buys-2q1...

Avis Budget Group $CAR Surges Higher as Activists Circle

http://www.streetinsider.com/13Fs/Avis+Budget+Grou...+Surges+Higher+as+Activists+Circle/10821259.html

Investment Write-Ups

Northland Capital Initiates Coverage on MRV Communications

https://northland.bluematrix.com/sellside/EmailDoc...

 When Will Internap's Multiple Get Re-Rated?

http://seekingalpha.com/article/3443376-when-will-...

How Communications Sales & Leasing Inc. Lifted Windstream Holdings Inc. Out of a Deep Funk

http://www.fool.com/investing/high-growth/2015/08/...

MLPs Now Look Attractive Relative to Equities

http://www.sl-advisors.com/mlps-now-look-attractiv...

5 MLPs With Big Disconnects Between Price and Prospects

http://blogs.barrons.com/incomeinvesting/2015/08/1...

Low Crude Prices Paying Off Huge For One MLP Sector. I like $CLMT. Crack spreads have been attractive.

http://seekingalpha.com/article/3445756-low-crude-...

Viacom: Value Trap?

http://seekingalpha.com/article/3447856-viacom-val...

Starboard Value Sees 100% Return Potential At MedAssets

http://seekingalpha.com/article/3447516-starboard-...

Whale Watching

Coho Capital Q2 letter & long thesis for Indian satellite television provider

http://www.valuewalk.com/2015/08/coho-capital/

KKR Losses May Reach $5 Billion From Samson, Energy Future Busts

http://www.bloomberg.com/news/articles/2015-08-18/...

Greenlight Capital Is Dead, Long Live Einhorn

http://activiststocks.com/blog/david-einhorn-green...

Lone Star Gets Contrarian With Superior Drilling Products

http://seekingalpha.com/article/3447216-lone-star-...

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Interest Rates

The Federal Reserve Will Raise Rates By a Quarter Point in September

http://tmfdeej.whotrades.com/blog/43757489782

Is a Grave Policy Error Coming Next Month?

https://app.hedgeye.com/insights/45854-is-a-grave-...

Guggenheim's Minerd: Global turmoil could push Treasury yields to 1%

http://blogs.barrons.com/incomeinvesting/2015/08/1...

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Other Investing News

Insiders Buying: Hertz CEO, Others Buy $2.13M in Stock

http://blogs.barrons.com/stockstowatchtoday/2015/0...

AdCare Announces Favorable Modifications to Master Lease Agreement

http://investor.adcarehealth.com/mobile.view?c=196...

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Thanks for reading.  Have a great day!

Jason aka @TMFDeej on Twitter