December Ben Graham Net-Net Newsletter: An activist value fund has taken an interest in this critical industry player
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The Ben Graham: Net-Net Newsletter’s December pick is a global OEM hard drive manufacturer.
This month’s pick:
· Trades at an 11% discount to NCAV, and a 32% discount to book value.
· The company is debt free.
· They return capital to shareholders in the form of a dividend; the stock currently yields 3.1%.
· Has been spotted by the activist value hedge fund Baker Street Capital who accumulated a 19% position.
Download your copy of the Ben Graham: Net-Net Newsletter today
“It always seemed, and still seems, ridiculously simple to say that if one can acquire a diversified group of stocks at a price less than the applicable net current assets alone...the results should be quite satisfactory. They were so, in our experience, for more than 30 years.”- Ben Graham
What’s a Net-Net?
A net current asset value bargain—or net-net—is a stock selling for less than the value of its current assets—cash, receivables, and inventory—minus all liabilities. Basically, it’s a stock selling for less than its liquidation value.
What’s the Ben Graham: Net-Net Newsletter?
GuruFocus’s Ben Graham: Net-Net Newsletter is written by Nate Tobik. It picks one new net-net every month. The newsletter goes out to subscribers on the first Friday of the month. The newsletter looks for stocks that have both a tangible margin of safety and reasonable upside potential.
So, get your copy of the Ben Graham: Net-Net Newsletter today.