June Ben Graham Net-Net Newsletter pick is an electronics manufacturer that is cash rich following an acquisition. Management is attempting to turn around their operations, which if successful will reward investors.
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The Ben Graham: Net-Net Newsletter’s June pick is a company in recovery with 93% of their market cap in cash.
- The majority of this company’s marketcap is in cash and securities.
- The market is valuing the company’s operations at $10m, which is cheap for a company that has earned $8m recently.
- Their turnaround is underway as they roll out new products and expand their margins.
- The company pays a dividend.
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“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