Rich Howe, founder of stock spinoff investing, walks through the bull case for NXDT. NXDT is a closed end fund trading at a huge discount to NAV; the fund is planning to transition to a REIT and Rich thinks that makes the stock very catalyst rich. A related company, NXRT, pursued a similar move ~6 years ago and their stock has gone up ~6x since.
You can find all my writings here: https://yetanothervalueblog.substack.com/
My thread on NXDT: https://twitter.com/AndrewRangeley/status/1488504533709991943?s=20&t=1i5ngJavxgKCHeNtsTWz1A
Rich's twitter: https://twitter.com/stockspinoffss
Stock Spinoff Investing: https://stockspinoffinvesting.com/premium/
Chapters
0:00 Intro
1:40 NXDT overview
6:55 Insider buying
9:45 NXRT parallels
12:00 NXDT's discount to NAV
13:10 NXDT's level 3 assets and their valuation
16:45 Vinebrook homes, one of NXDT's holdings
24:30 Why has NXDT's NAV discount widened?
27:10 NXDT investing into controlled entities
31:30 What is NXDT's post-REIT strategy?
34:30 Why is it taking so long to switch to a REIT?
37:50 Will NXDT buyback shares?
40:00 NXDT's fees
43:30 Post-REIT dividend policy
47:55 Closing NXDT thoughts
50:00 Rich's favorite recent spin: JXN
55:00 BHC: the spin Rich is looking forward to the most
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