June Magic Formula Newsletter: profitable yet trading below cash value
Even better, the CEO is a value investor who owns a meaningful amount of stock, and the company is an absolute share cannibal when it comes to buying back their own shares.
Despite all of these great traits, the company trades for less than the value of the cash on its books, presenting investors a great opportunity to buy into a business that consistently throws off cash at a huge discount to its intrinsic value.
Fair value is likely 60% above today's share price. We will buy the shares on Monday.
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June Ben Graham Net-Net Newsletter
June's pick was first profiled two years ago. Recent events have made the company much more attractive, especially after the company engaged an investment bank to explore a sale, or asset divesture.
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