September Ben Graham Net-Net Newsletter pick is an electronics contract manufacturer that’s in the midst of a recovery from the financial crisis. A proven operator, they’ve also been aggressive in purchasing bargain assets from competitors. This company has a history of strong profitability, asset safety, and potentially undervalued real estate.
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The Ben Graham: Net-Net Newsletter’s September pick is an electronics company located in Minneapolis.
· The company has doubled their book value in the past 11 years.
· Selling for 54% of book value, and less than working capital.
· The company bought out their lease for 8.44x rent expense.
· The balance sheet is clean with no goodwill or intangibles.
· They made an acquisition in 2011 of $2.3m worth of assets for $1.5m in total cost to themselves.
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, download your copy of the Ben Graham: Net-Net Newsletter today
The newsletter is ready for download for GuruFocus Premium Members. If you are not a Premium Member, you are invited for a Free 7-Day Trial.
The Ben Graham: Net-Net Newsletter’s September pick is an electronics company located in Minneapolis.
· The company has doubled their book value in the past 11 years.
· Selling for 54% of book value, and less than working capital.
· The company bought out their lease for 8.44x rent expense.
· The balance sheet is clean with no goodwill or intangibles.
· They made an acquisition in 2011 of $2.3m worth of assets for $1.5m in total cost to themselves.
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, download your copy of the Ben Graham: Net-Net Newsletter today
