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July Ben Graham Net-Net Newsletter: A net-net undergoing a business transformation, with an activist value investor at the helm

July 08, 2013
GuruFocus

GuruFocus

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July’s pick’s legacy business is letting contracts expire and their business runoff. Management is an activist deep value investor and has used the company in the past as a platform for activism. The company currently has a small holding in another near net-net.

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The Ben Graham: Net-Net Newsletter’s July pick is a intellectual property licensing firm with an activist investor as CEO.

· The company is selling for 81% of NCAV.

· The Chairman of the Board and CEO is an experienced activist deep-value investor.

· The company earned $.53 per share last year; the market is giving their earnings no credit.

· The company is undertaking a transformation from an intellectual property licensing company to an asset management firm. They have had past success at activist value investing.

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.


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