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.
Net 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...
potentially 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...
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...