wish pops, another example of low price to liquid assets stocks Bad business model, losing money. But had more assets that was being reflected in the stock.
this was not quite a cigar butt net net benjamin graham type stock, but it was low priced compared to liquid assets.
Netnet
stocks trading below liquidation value. oversold below cash heldNet net or cigar butt investing is a form of deep value hunting. Stocks so beat up, the market cap is below the value of the assets on the balance sheet. Even trading below the cash on the balance sheet. So beat up, the market is pricing the stock as worth more dead than alive.
I thought it was just a thing that happened in history book, or in the depression days. But apparently Im wrong. It happens even today.
There are probably hundreds of net net cigar butt stocks at varying degrees of oversold or beat up levels. Some are losing money, some are not so much. The market just isnt interested in the accounting value in the business's balance sheet. How can that be so in a efficient market? So many of the large companies are priced perfect and looking to the future. But this tiny micro caps arent seeming to price an accurate today.
MSN- another example of cigar butt deep value net net stockspotentially 1.00 in value and trading 50-60 cents.
MSN Emerson Radio has a history of trading below tangible book value when china gets sold and then returning to near book value when china is doing well.
Short term assets are higher total liabilities and enterprise value reflects this as well with a negative enterprise value.
Disclaimer.
Penny stocks are extremely risky and will lose you money. High risk of bankruptcy or illiquidity.
Digging in the trash for almost free value-Net Net Cigar ButtsBenjamin Graham taught Warren Buffett his Net Net liquidation value stock strategy. Graham would hunt for stocks that were so cheap that there was more value in the company if they stopped operations and passed out the assets. Net liquidation value was higher than the price of the whole company. Graham learned this from the hard times of the depression years, but the concept still applies to companies today.
Disclaimer: Small cap penny stocks are highly risky and will lose you money. This is not advice or any recommendation to buy, you will lose money.
CEAD ARVL CENN
Explaining "Net Net" stocks : ARVL up 100% ,was sub liquidation ARVL stock rocketed 100% today alone. The move might be explained by the fact that the marketcap was trading below "net liquidation value". Net net stocks, or stocks trading below liquidation value, is a strategy used by Benjamin Graham who also taught Warren Buffett how to use the strategy.
Small cap stocks and penny stocks are extremely risky. You can and will lose money investing in Penny stocks. This video explanation discussion is for entertainment and education only.
