In the wasteland of stocks deserted by investors, companies selling below Net Current Asset Value (NCAV) are where one can find treasure than pure trash. This strategy was first discussed by Benjamin Graham. Heeding his advice, GuruFocus developed a screener to creat a list of Ben Graham NCAV Bargain in real time. GuruFocus found that portfolios of NCAV Bargains gained more than 50% since November even as market declined.
I frequent the screener to find interesting investment ideas.
One of recent bargains the screen churns out is The Street.com (TSCM, Financial). The Street.com? you mean the financial media company that CNBC program Mad Money host Jim Cramer serves as Chairman of Board of Directors?
Yes, indeed, you are right on!
It is no obscure high-tech company that produces a product but does not have the marketing power, or a empty-shell entity sitting on a pile of cash but couldn’t figure out what business to engage, or even an auto company that seeing its inventories sitting in the dealer’s parking lot not moving. Like the other companies that the NCAV screener turns out.
This is a hot dot.com that everyone watches CNBC and Jim Cramer’s crazy show would have heard about.
It has no inventory that becomes obsolete over time; it has no long-term debt so one day it does not depend on the kindness of strangers one day for its survival.
Besides, it has real revenue and income. In 2008, Revenue actually increased from $65.4 million to $71.9 million, no small the accomplishment in a year like 2008 for a website dedicated almost entirely to financial market. The company made 4 cents per share, even though that is down sharply from $1.03 per share in 2007. Quarterly comparison between 4Q08 and 4Q07 is darker, but it still managed to almost break even. The advertising revenue is down, so is the membership subscription. The trend is extending into 2009. The Streetc.om is report its 1Q09 result on May 5, 2009.
Facing adversary environment, the company seems to be trying to put its action together. On March 13, Jim Cramer forced long time CEO Thomas J. Clark to leave the company. Then on March 19, it announced a workforce reduction plan that will eliminate 6% of the workforce and saving the company about $2.4 million.
Whether Mr. Jim Cramer will successfully turn around his company largely depends how deep the recession will go and how long it will last. But with almost $73 million cash in hand as of December 31, 2008 and a market cap of $62 million, investors at least have some margin of safety.
On the other hand, however, one couldn’t help noticing Mr. Jim Cramer has been selling the stock consistently. GuruFocus Data shows in 2009, he has sold 22,500 shares on February 23 at $2.23 per share, and then same number of shares on April 15, 2009 at $2.32. TSCM closed at $2.04 last Friday (May 1, 2009).
If TSCM is cheap according to Benjamin Graham, why then Jim Cramer is selling?
It is mad money indeed!
To find the entire list of companies selling below Net Current Asset, click here.
I frequent the screener to find interesting investment ideas.
One of recent bargains the screen churns out is The Street.com (TSCM, Financial). The Street.com? you mean the financial media company that CNBC program Mad Money host Jim Cramer serves as Chairman of Board of Directors?
Yes, indeed, you are right on!
It is no obscure high-tech company that produces a product but does not have the marketing power, or a empty-shell entity sitting on a pile of cash but couldn’t figure out what business to engage, or even an auto company that seeing its inventories sitting in the dealer’s parking lot not moving. Like the other companies that the NCAV screener turns out.
This is a hot dot.com that everyone watches CNBC and Jim Cramer’s crazy show would have heard about.
It has no inventory that becomes obsolete over time; it has no long-term debt so one day it does not depend on the kindness of strangers one day for its survival.
Besides, it has real revenue and income. In 2008, Revenue actually increased from $65.4 million to $71.9 million, no small the accomplishment in a year like 2008 for a website dedicated almost entirely to financial market. The company made 4 cents per share, even though that is down sharply from $1.03 per share in 2007. Quarterly comparison between 4Q08 and 4Q07 is darker, but it still managed to almost break even. The advertising revenue is down, so is the membership subscription. The trend is extending into 2009. The Streetc.om is report its 1Q09 result on May 5, 2009.
Facing adversary environment, the company seems to be trying to put its action together. On March 13, Jim Cramer forced long time CEO Thomas J. Clark to leave the company. Then on March 19, it announced a workforce reduction plan that will eliminate 6% of the workforce and saving the company about $2.4 million.
Whether Mr. Jim Cramer will successfully turn around his company largely depends how deep the recession will go and how long it will last. But with almost $73 million cash in hand as of December 31, 2008 and a market cap of $62 million, investors at least have some margin of safety.
On the other hand, however, one couldn’t help noticing Mr. Jim Cramer has been selling the stock consistently. GuruFocus Data shows in 2009, he has sold 22,500 shares on February 23 at $2.23 per share, and then same number of shares on April 15, 2009 at $2.32. TSCM closed at $2.04 last Friday (May 1, 2009).
If TSCM is cheap according to Benjamin Graham, why then Jim Cramer is selling?
It is mad money indeed!
To find the entire list of companies selling below Net Current Asset, click here.
