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...
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...