This month's stock consistently generates fantastic returns on capital. Revenue was up over 80% year over year in their most recent quarter, and profits were up over 400%.
Even better, the CEO is a value investor who owns a meaningful amount of stock, and the company is an absolute share cannibal when it comes to buying back their own shares.
Despite all of these great traits, the company trades for less than the value of the cash on its books, presenting investors a great opportunity to buy into a business that consistently throws off cash at a huge discount to its intrinsic value.
Fair value is likely 60% above today's share price. We will buy the shares on Monday.
Download this month’s Microcap Magic Formula Newsletter.
GuruFocus publishes three monthly newsletters. These newsletters are the included features for Premium Members.
1. Ben Graham: Net-Net Newsletter focuses on net-net stocks that Ben Graham would buy. It is released on the first Friday of each month.
2. Micro-Cap Magic Formula Newsletter picks companies that have high return on capital and high earnings yield. It is released on the second Friday of each month.
3. Buffett-Munger Best Bargains Newsletter recommends companies that have high business quality, but traded at undervalued prices. A younger Buffett would buy this kind of companies. It is published on the third Friday of each month.
Also don’t miss:
June Ben Graham Net-Net Newsletter
June's pick was first profiled two years ago. Recent events have made the company much more attractive, especially after the company engaged an investment bank to explore a sale, or asset divesture.
All the monthly newsletters are included in GuruFocus Premium Membership. If you are not a Premium Member, we invite you for a 7-day Free Trial.
Even better, the CEO is a value investor who owns a meaningful amount of stock, and the company is an absolute share cannibal when it comes to buying back their own shares.
Despite all of these great traits, the company trades for less than the value of the cash on its books, presenting investors a great opportunity to buy into a business that consistently throws off cash at a huge discount to its intrinsic value.
Fair value is likely 60% above today's share price. We will buy the shares on Monday.
Download this month’s Microcap Magic Formula Newsletter.
GuruFocus publishes three monthly newsletters. These newsletters are the included features for Premium Members.
1. Ben Graham: Net-Net Newsletter focuses on net-net stocks that Ben Graham would buy. It is released on the first Friday of each month.
2. Micro-Cap Magic Formula Newsletter picks companies that have high return on capital and high earnings yield. It is released on the second Friday of each month.
3. Buffett-Munger Best Bargains Newsletter recommends companies that have high business quality, but traded at undervalued prices. A younger Buffett would buy this kind of companies. It is published on the third Friday of each month.
Also don’t miss:
June Ben Graham Net-Net Newsletter
June's pick was first profiled two years ago. Recent events have made the company much more attractive, especially after the company engaged an investment bank to explore a sale, or asset divesture.
All the monthly newsletters are included in GuruFocus Premium Membership. If you are not a Premium Member, we invite you for a 7-day Free Trial.
