LevelFields alerted members on November 8, 2022 of a small packaging company's new program to return profits to shareholders. Over the course of the day, the stock rose +10%. Over the next 10 weeks, it rose +36%, easily outperforming the S&P 500.
Before trading began on November 8, 2022, Veritiv Corporation - a business-to-business provider of packaging, publishing, and hygiene products - announced a new plan to return capital to shareholders. The obscure small cap few investors had heard of was quietly growing its earnings per share by 50% over the previous few quarters and was going to reward patient investors by returning capital to shareholders.
Being a small cap not tied to any megacap investor, Virtiv receives no regular media coverage from the major news outlets. So it may have surprised LevelFields members when they were notified of the bullish event which came when the company announced their new program.
The creation of a new program to return capital to shareholders is a pivotal moment in a company's growth, often marking long-term future growth in revenue and/or earnings. Virtiv was no exception to this pattern, picked out by LevelFields.
The day the new program was announced, the stock price rose +10%. Over the following 12 weeks, it rose another +26 percentage points for a total gain of +36%. This considerably outperformed the S&P 500, which was up +6% over the same period.
