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November Ben Graham Net-Net Pick: A Food Processing Company Trading for 36% of Book Value and Six Times Earnings

November 03, 2013
hyperman299

GuruFocus

354 followers
November Ben Graham Net-Net Newsletter pick has been undervalued for seemingly forever, but with a 1% dividend yield, and 9% book value growth patient investors haven’t suffered while waiting. Executive and capital structure changes might signal that value realization isn’t far off.

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 November’s pick is vertically integrated food processing company located in Pennsylvania:

· The company sells for 36% of BV and 76% of NCAV

· They have grown book value consistently throughout the years.

· P/E: 6.82 EV/EBIT: 7.9

· The company has a standing offer to repurchase employee held shares at $150/share, 50% higher than the current trading price

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


Rating: 3.7/5 (3 votes)

Comments

batbeer2
Batbeer2 premium member - 11 months ago
Hi gurufocus,

Thanks for the newsletter.

The links are a bit confusing though.

>> The Ben Graham: Net-Net Newsletter’s November’s pick

Leads to the archive, not the newsletter. Once you're there, the november letter is missing. The most recent one listed in the archive is for october.

>>Download your copy of the Ben Graham: Net-Net Newsletter today

Does lead to the new letter though.


-EDIT-

Fixed now, thanks.

Please leave your comment:


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