May Ben Graham Net-Net pick is simply too cheap, it’s trading for less than net cash. Their operations are profitable and cash flow generative.
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The Ben Graham: Net-Net Newsletter’s May’s pick is company that owns a cleaning supply retail chain. The company:
- Sells for 55% of NCAV, and for less than net cash and investments.
- Their operations have been cash flow generative nearly doubling their cash over the past seven years.
- Management has been conservative regarding cash use.
- The company is owned by a majority shareholder and run by the founder’s grandson
Company management is shareholder friendly.
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