Deep Value -finding stocks that trade below net current assets
Deep value means cheap and cheap can lead to opportunity.
De risked or beat up is why we consider cheap stocks that are already depressed, the financial storm has already hit the stock price. Sometimes stocks get so beat up its unreasonable and doesn't make sense.
Jaresh Holdings (JRSH) might fit in this category.
Its trading below tangible book value and also below net current asset value.
Net Current assets is the most liquid tangible property on the balance sheet minus total liabilities. When a stock trades below this value, its surprising. Its essentially the value of the net working capital inside the stock. Take the money and get the rest of the company for "free".
Warren Buffett and Benjamin Graham liked to look for these because it gave them a statistical and quantitative advantage to start with bargain stocks.
In the past, when JRSH trade below net current asset value, it served as a rough support area. We are there again now, so the question is will it hold around here again. Time will tell.
De risked or beat up is why we consider cheap stocks that are already depressed, the financial storm has already hit the stock price. Sometimes stocks get so beat up its unreasonable and doesn't make sense.
Jaresh Holdings (JRSH) might fit in this category.
Its trading below tangible book value and also below net current asset value.
Net Current assets is the most liquid tangible property on the balance sheet minus total liabilities. When a stock trades below this value, its surprising. Its essentially the value of the net working capital inside the stock. Take the money and get the rest of the company for "free".
Warren Buffett and Benjamin Graham liked to look for these because it gave them a statistical and quantitative advantage to start with bargain stocks.
In the past, when JRSH trade below net current asset value, it served as a rough support area. We are there again now, so the question is will it hold around here again. Time will tell.
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