There are some investors who invest in U.S.-listed stocks that are trading below their liquidation values because they believe they can gain from these allocations after the market has reappraised the share prices to near or above the liquidation value.
Should the company become insolvent, these shareholders would, in theory, still be able to benefit from the liquidation value, which will most likely be higher 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 stock prices are trading below their net current asset value per share (NCAVPS).
InflaRx NV
The first stock short-term investors may want to consider is InflaRx NV (IFRX, Financial), a Jena, Germany-based biotechnology developer of treatments for rare and chronic debilitating systemic inflammatory skin disease and rare and life-threatening autoimmune diseases. The company is also developing treatments for chronic inflammatory skin disorders and oncological diseases as well as chronic inflammation and autoimmune diseases.
The stock was trading at a price of $3.02 per share at close on Tuesday, which stands below the net current asset value per share of $3.69 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.
Due to a 41.23% decrease that happened so far this year, the stock now has a market capitalization of $133.44 million and a 52-week range of $2.66 to $7.83.
Suvretta Capital Management, LLC is dominating the group of the company's top fund holders with 7.43% of shares outstanding. The investment company is followed by Great Point Partners LLC with 4.98% and Orbimed Advisors LLC with 2.41% of shares outstanding.
On Wall Street, as of June, sell-side analysts recommend a median rating of hold and an average price target of $7.01 per share for the stock.
Caladrius Biosciences Inc
The second stock short-term investors may want to consider is Caladrius Biosciences Inc (CLBS, Financial), a Basking Ridge, New Jersey-based clinical-stage biopharmaceutical developer of treatments for diseases and conditions caused by several illnesses. These include ischemia, angina, coronary microvascular dysfunction and kidney disease.
The stock was trading at a price of $1.58 per share at close on Tuesday, standing below the net current asset value per share of $1.84 as of the March 2021 quarter.
GuruFocus assigned a score of 4 out of 10 to the company's financial strength and 1 out of 10 to its profitability.
After a 9.72% increase that occurred so far this year, the stock now has a market capitalization of $94.01 million and a 52-week range of $1.25 to $4.89.
Vanguard Group Inc is the leader amid the company's top fund holders with 4.72% of shares outstanding, followed by Jim Simons (Trades, Portfolio) with 2.45% and BlackRock Inc. with 1.74%.
On Wall Street, as of June, sell side analysts recommend two buy ratings for the stock with an average target price of $8.67 per share.
Adverum Biotechnologies Inc
The third stock short term investors may want to consider is Adverum Biotechnologies Inc (ADVM, Financial), a Redwood City, California-based biotechnology developer of therapies for the treatment of chronic retinal diseases, including wet age-related macular degeneration and diabetic macular edema.
The stock was trading at a price of $3.53 per share at close on Tuesday, which is still below the net current asset value per share of $3.71 as of the March 2021 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.
Following a 70.53% decline that took place so far this year, the market capitalization is now $345.71 million and the 52-week range is $3.34 to $26.98.
Ra Capital Management, LLC is the company's top fund holder with 9.56% of shares outstanding. The asset management firm is followed by venBio Select Advisor LLC with 8.17% and by RTW Investments, LLC with 7.50% of shares outstanding.
On Wall Street, as of June, sell side analysts recommend a median rating of overweight with an average target price of $7.88 per share for the stock.
Disclosure: I have no positions in any securities mentioned.
