A Trio of Net Current Asset Value Stock Picks

Short-term investors may want to have a look at these businesses

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Alberto Abaterusso
Apr 13, 2021
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There are some investors who purchase U.S.-listed equities that are trading below their liquidation value because they believe they can gain from these kinds of investments after the market has reassessed the share prices to near or above the liquidation value.

Should the company go bankrupt, these shareholders would, in theory, still be able to prevent enduring a loss as the value that results from liquidation will most likely not be lower than the purchasing price. The liquidation value of these so-called net current asset value stocks is calculated as "current assets minus total liabilities."

Thus, short-term investors may want to consider the following three companies, as their stocks' prices are trading below their net current asset value per share (NCAVPS).

Happiness Biotech Group Ltd

The first stock short-term investors could be interested in is Happiness Biotech Group Ltd (

HAPP, Financial), a Chinese health care manufacturer and seller of functional food and dietary supplement products.

The stock was trading at a price of $1.92 per share at close on Monday, standing below the net current asset value per share of $2.68 as of the September 2020 quarter.

GuruFocus assigned a score of 9 out of 10 to the company's financial strength and 5 out of 10 to its profitability.

Following a 13.33% increase so far this year, the stock has a market capitalization of $49.61 million and a 52-week range of $1.63 to $3.68.

Jim Simons (Trades, Portfolio) is the leader amid the company's top fund holders with 2.39% of shares outstanding. The investor is followed by Acadian Asset Management LLC with 0.48% and Marshall Wace LLP with 0.17% of shares outstanding.

On Wall Street, the stock has one recommendation rating of buy.

NextCure Inc

The second stock short-term investors could be interested in is NextCure Inc (

NXTC, Financial), a Beltsville, Maryland-based clinical-stage biopharmaceutical developer of novel treatments for cancer and other immune-related diseases.

The stock was trading at a price of $9.42 per share at close on Monday, which stands below the net current asset value per share of $9.98 as of the December 2020 quarter.

GuruFocus assigned a score of 5 out of 10 to the company's financial strength and 1 out of 10 to its profitability.

As a result of a 13.4% decline so far this year, the stock has a market capitalization of $260 million and a 52-week range of $7.91 to $40.94.

Orbimed Advisors dominates among the company's top fund holders with 9.84% of shares outstanding, followed by Morgan Stanley with 7.92% and BlackRock Inc. with 5.50%.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $18.29 per share.

CHF Solutions Inc

The third stock short term investors could be interested in is CHF Solutions Inc (

CHFS, Financial), an Eden Prairie, Minnesota-based developer of medical devices to treat patients with ultrafiltration therapy.

The stock was trading at a price of $5.35 per share at close on Monday, which is still below the net current asset value per share of $5.42 as of the December 2020 quarter.

GuruFocus assigned a score of 5 out of 10 to the company's financial strength and of 1 out of 10 to its profitability.

Year to date the stock price fell by nearly 30%, determining a market capitalization now standing at $34.95 million and a 52-week range of $5.20 to $37.50.

Jane Street Group, LLC is the leader amid the company's top fund holders with 1.51% of shares outstanding, followed by HighTower Advisors, LLC with 0.73% and Advisory Services Network, LLC with 0.11%.

On Wall Street, the stock has a median recommendation rating of buy.

Disclosure: I have no positions in any securities mentioned.

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I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands. You can follow me on Twitter at https://twitter.com/AAbaterusso