Net Nets

Hi there,

I have understood the net nets investing strategy as buying those securities that are trading at a price less than 2/3*(Current Assets-Total Liabilites)/Shares Outstanding. How can I find all such stocks in the USA using your free screener?

Thanks,
Siddhartha

Stocks Discussed: 
Alibaba Health Information Technology Ltd (ALBBY)

Submitted by Sidlaw. Created on Thursday 11th May 2023. Updated on Thursday 11th May 2023.

Submitted by GrahamValue on Monday 22nd May 2023

Dear Siddhartha,

Thank you for your comment!

Yes, that is correct.

Stocks with Graham Numbers and NCAV figures exceeding 70% can be detected by the Classic Graham Screener, except when the stock also clears the qualitative criteria for that grade and therefore has an actual Intrinsic Value greater than 70%.

Thank you again for your comment!

Submitted by Sidlaw on Monday 22nd May 2023

Thanks.

So how does the information you just provided make sense in light of the fact that all stocks in USA trading below 2/3 NCAV can be found using the Free Classic Graham Screener?

Is it because all stocks trading in USA can be found using the Free Classic Graham Screener but some stocks trading in other geographies cannot be found on Free Classic Graham Screener?

Thanks,
Siddhartha

Submitted by GrahamValue on Monday 22nd May 2023

Dear Siddhartha,

Thank you for your comment!

For a stock to be selling under two-thirds of its NCAV, it would need to have an NCAV or Net-Net(%) exceeding 150% on the free Classic Graham Screener.

Such stocks will not have a positive EPS (TTM) as Graham required. Only the Advanced Graham Screener will show stocks clearing all Graham requirements.

Thank you again for your comment!

Submitted by Sidlaw on Tuesday 23rd May 2023

Hi there,

Thanks for relentlesssly supporting me in understanding your data services.

I understand that I can find all stocks in USA selling for less than 2/3 NCAV by putting NCAV >= 150% on Free CLassic Graham Screener. Is this correct?

Now if the above is correct, then why are the number of stocks covered in Free Classic Grahan Screener only 149K and not 154k?

Thanks,
Siddhartha

Submitted by GrahamValue on Tuesday 23rd May 2023

Dear Siddhartha,

Thank you for your comment!

All your questions are welcome. The answer to your first question is - Yes.

Regarding your second question, we seem to be going in circles as we're discussing this for the 3rd or 4th time now on this thread.

Please go through Search vs Classic vs Advanced as it talks specifically about your second question.

Thank you again for your comment!

Submitted by Sidlaw on Tuesday 23rd May 2023

Thanks, I understand it now.

But I still have two small questions-

1. What does intrinsic value greater than 70% indicate and how is it found out? And what are the top 5000 stocks and what do they mean?

2. How are we sure that no such stocks (instrinsic value greater than 70%) exist for US based stocks?

Thanks,
Siddhartha

Submitted by GrahamValue on Tuesday 23rd May 2023

Dear Siddhartha,

Thank you for your comment!

But we seem to be going in circles again.

1. Please see Search vs Classic vs Advanced. It may help to first go through the Quick Reference.

2. They absolutely exist.

Thank you again for your comment!

Submitted by Sidlaw on Tuesday 23rd May 2023

Thanks.

What is the calculation for NCAV % in that case?

Submitted by GrahamValue on Tuesday 23rd May 2023

Dear Siddhartha,

Thank you for your comment!

Please see Applying The NCAV Strategy Correctly for that too, which is also discussed in the Quick Reference.

As a general note, please start by going through the Quick Reference; which will answer almost all the questions you've asked here. The Quick Reference includes a list of 10 video tutorials if you would prefer that to reading.

Thank you again for your comment!

Submitted by Sidlaw on Wednesday 24th May 2023

Hi there,

Thanks for pointing me in the right direction.

I found that formula for NCAV % and Intrinsic Value% (for NCAV stocks) is the same. Is this true? If not, can you explain what are the formulas?

If the above is true, then it doesn't make sense that Free Classic Graham Screener can let you screen all stocks having NCAV % greater than 70% unless Intrinsic Value % is also greater than 70% because both are essentially the same. Please shed some light on this.

Thanks,
Siddhartha