April 6, 2014 Issue of Ben Graham Net-Net Bargains Newsletter Is Ready

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Benjamin Graham Net Current Asset Value Screener


What are Benjamin Graham's Net Current Asset Value Bargains?

Update: We have created a monthly Net Current Asset Bargains newsletter to highlight the baingains we find.

In The Intelligent Investor, Benjamin Graham discussed the methods he used in his investment firm Graham_Newman. One is them is what he called Net-Current-Asset (Or “Bargain”) issues. He wrote:

The idea here was to acquire as many issues as possible at a cost for each of less than their book value in terms of net-current-assets alone – i.e., giving no value to the plant account and other assets. Our purchases were made typically at two-thirds or less of such stripped-down asset value. In most years we carried a wide diversification here – at least 100 different issues.

Graham’s “net current asset value” approach, apparently works very well. One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham’s strategy produced similar results.

Ben Graham loved these types of situations, defining the net-net value as:

Cash and short-term investments + (0.75 * accounts receivable) + (0.5 * inventory) - total liabilities

Graham looked for companies whose market values were less than two-thirds of that net-net value.

With this in mind, GuruFocus has created a Graham Net Current Asset Value screener to filter out the companies that meets the net-net value criteria. The rules are:

  • The stock prices are less than the net current asset value of the companies – Benjamin Graham
  • During the past 12 months, the companies generated positive operating cashflow.
  • The company has no meaningful debt compared to its cash position.
  • According to Benjamin Graham, some of these companies may well go under as economic conditions worsen, it is important to hold a diversified group of them.

The performance of the stocks can be seen in user portfolios, described in this article



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This information is for Premium Members Only.


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Symbol Company Net Current Asset Value (NCAV) Price Price/NCAV (%) Oprt. Cash Flow per share(12m) ($) Market Cap ($mil)
Premium Member OnlyPremium Member Only0.20$0.1575-0.1047.477
Premium Member OnlyPremium Member Only0.01$0.011000.001.737
Premium Member OnlyPremium Member Only0.08$0.06750.007.488
Premium Member OnlyPremium Member Only2.03$2.90142.9-0.2040.270
Premium Member OnlyPremium Member Only1.39$1.60115.1-0.109.140
Premium Member OnlyPremium Member Only1.18$1.1194.1-0.9027.023
Premium Member OnlyPremium Member Only0.02$0.01500.001.792
Premium Member OnlyPremium Member Only3.15$3.1399.4-0.106.141
Premium Member OnlyPremium Member Only0.03$0.04133.30.000.583
Premium Member OnlyPremium Member Only3.62$2.9982.6-0.8055.775
Premium Member OnlyPremium Member Only0.39$0.1846.20.001.548
Premium Member OnlyPremium Member Only1.12$0.5952.70.005.250
Premium Member OnlyPremium Member Only0.06$0.08133.30.0019.345
Premium Member OnlyPremium Member Only0.01$0.011000.000.984
Premium Member OnlyPremium Member Only0.75$0.751000.0044.300
Premium Member OnlyPremium Member Only3.79$3.2084.4-0.90395.220
Premium Member OnlyPremium Member Only47.07$32.0068-2.102884.625
Premium Member OnlyPremium Member Only0.68$0.76111.80.206.886
Premium Member OnlyPremium Member Only0.17$0.1694.1-0.1025.220
Premium Member OnlyPremium Member Only7.67$8.85115.40.9098.130
Premium Member OnlyPremium Member Only1.14$1.1298.2-0.1023.551
Premium Member OnlyPremium Member Only1.37$1.57114.6-0.5062.901
Premium Member OnlyPremium Member Only0.39$0.46117.90.0096.824
Premium Member OnlyPremium Member Only0.26$0.2180.80.0055.020
Premium Member OnlyPremium Member Only0.47$0.31660.0018.503
Premium Member OnlyPremium Member Only0.04$0.051250.005.231
Premium Member OnlyPremium Member Only0.36$0.451250.1025.120
Premium Member OnlyPremium Member Only3.83$4.05105.70.108.820
Premium Member OnlyPremium Member Only0.22$0.28127.30.001097.828
Premium Member OnlyPremium Member Only7.34$1.8525.2-2.207.303

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