When you have identified a security, be it common stock or HY/distressed debt, that you belive has sufficient margin of safety. What are typical catalysts that you are you looking for that will unlock value as the MV appreciates to intrinsic value? I understand that index listing, management change, rating upgrade, takeover are all typical catalysts, are there others? Also, what observable traits are associated with these catalysts? I am simply looking for a generalized discussion or some resources where I can broaden my limited understanding. Id love to hear the experiences of others on the board.
Management related: share issuance or repurchases, spinoffs, liquidation, asset sales, recapitalization, bankruptcy among others. External: hostile takeovers, proxy fights, change in market supply/demand Catalysts vary in their potency, with some such as bankruptcy unlocking all the value while others like asset sales unlock only some of the value.