In this edition of Watchlist Wednesday, we highlight five stocks trading below their net current asset values (NCAV).
Investment managers and financial media pundits often say Benjamin Graham’s famous Net Current Asset Stocks no longer exist. They claim the strategy can’t be implemented anymore because the stocks are too hard to find.
The Stock Market Blueprint’s NCAV stock screen currently shows a dozen U.S. listed stocks selling below their NCAV. Several more are trading just slightly above this metric.
Considering that Graham suggested investing in baskets of 10-30 NCAV stocks, there appear to be more than enough opportunities for individual investors.
This article appeared first on The Stock Market Blueprint Blog
NCAV Description
NCAV is a stock-selection strategy developed and implemented by Benjamin Graham as discussed in Security Analysis (1) and The Intelligent Investor (2).
Warren Buffett nicknamed it the “cigar-butt approach” because “a cigar-butt found on the street that has only one puff left in it may not offer much of a smoke, but the ‘bargain purchase’ will make that puff all profit.”
The screen finds stocks trading for less than the difference between current assets minus total liabilities. There is no regard given to the company’s long-term assets or future profits.
Here is a breakdown of the five stocks with the lowest price to NCAV as found on The Stock Market Blueprint’s NCAV stock screen.
