Seth Klarman’s New Purchase Targacept Is Now a Net-Net
Seth Klarman bought the stock as a cigar butt investment, meaning poor companies at very low prices. With net cash higher than its share price now, the stock is now a Ben Graham net-net. Buying a basket of net-net worked very well for Ben Graham. You can see the current list of Ben Graham net-nets with our Net-Net screener.
Our writer Matt Blecker has done a detailed analysis on Targacept. He concluded that the company will have $8 per share of net cash by the year end, which means that the stock is even cheaper than it looks now.
Will you buy the net-net stock Targacept now at a 30% lower price than Seth Klarman has paid?
For more net-nets, check out our Ben Graham Net-Net screener.