5 Stocks Ripe For Activist Takeovers

Natural Health Trends Corp. (NASDAQ:NHTC): A multi-level marketing firm engaged in selling lifestyle enhancement products, cosmetics, personal care, and dietary supplements.

– Market Cap: $290 Million

– Enterprise Value: $195 Million

– EBIT (TTM): $58 Million

– Enterprise Multiple: 3.35

– Closing price on 11/22/16: $25.93

Greenbrier Companies Inc (NYSE:GBX): Designs, manufactures & markets railroad freight car equipment and marine barges.

– Market Cap: $1.2 Billion

– Enterprise Value: $1.4 Billion

– EBIT (TTM): $393 Million

– Enterprise Multiple: 3.49

– Closing price on 11/22/16: $37.05

General Motors Company (NYSE:GM): Designs, builds and sells cars, trucks and automobile parts.

– Market Cap: $52 Billion

– Enterprise Value: $37.3 Billion

– EBIT (TTM): $9.9 Billion

– Enterprise Multiple: 3.77

– Closing price on 11/22/16: $33.81

Implementation

What Works on Wall Street determined that the enterprise multiple was the best single-metric price ratio over time. The authors of Quantitative Value came to the same conclusion: “After dissecting price ratios in every manner possible, we found the enterprise multiple comes out on top.” Deep Value says, “The enterprise multiple is the better metric when it comes to identifying undervalued stocks.”

Due to the nature of deep value strategies such as the enterprise multiple, average investors will find numerous reasons not to buy (3) the above stocks. Disciplined investors, on the other hand, will find success following such a simple investment strategy.

A good way to implement this strategy is by regularly investing equal amounts in the qualifying stocks with the lowest enterprise multiple.

Follow along with The Stock Market Blueprint’s Shadow Stock Portfolio as it implements this strategy in real-time.

Note: Mitchell Mauer is the Founder of TheStockMarketBlueprint.com. The Stock Market Blueprint is a site that finds value stocks for investors building long-term wealth. The site’s investment philosophy is anchored in principles established by Benjamin Graham and his most reputable followers over the last 100 years.

Additional Links:

(1) https://www.thestockmarketblueprint.com/what-works-on-wall-street-book-review/

(2) https://www.thestockmarketblueprint.com/enterprise-multiple-screen/

(3) https://www.thestockmarketblueprint.com/what-does-it-take-to-profit-in-the-stock-market/