rukawa Posted October 15, 2016 Share Posted October 15, 2016 According to this the returns of a negative enterprise value stock strategy in the US are 50% a year: https://blogs.cfainstitute.org/investor/2013/07/10/returns-on-negative-enterprise-value-stocks-money-for-nothing/ You can do a screen for them on ft.com: https://markets.ft.com/data/equities/results My guess is that the reason for the outperformance is that they mostly go nowhere for long periods of time but every so often they pop. So if you have a diversified portfolio you almost never lose money but every so often there is a massive gain. Anyways Nate listed one on his blog: http://www.oddballstocks.com/2013/07/negative-enterprise-value-and-titanium.html Link to comment Share on other sites More sharing options...
rukawa Posted October 15, 2016 Author Share Posted October 15, 2016 Another: Emerson Radio Corp (buyer beware...read article below) http://seekingalpha.com/article/3802776-emerson-radio-really-buy-stock Link to comment Share on other sites More sharing options...
scorpioncapital Posted October 15, 2016 Share Posted October 15, 2016 I had my eye on this one SPRT...also not entirely sure if it's negative enterprise strictly defined, but life insurers seem extraordinarily cheap some of them trading at 0.5x tangible BV and less than 10x P/E. Link to comment Share on other sites More sharing options...
DavidVY Posted October 15, 2016 Share Posted October 15, 2016 I had my eye on this one SPRT...also not entirely sure if it's negative enterprise strictly defined, but life insurers seem extraordinarily cheap some of them trading at 0.5x tangible BV and less than 10x P/E. Also check out NWLI. 1/2 TBV. Around 8x PE. Despite all the huballo about interest rates 1/2TBV is a pretty good margin of safety. Link to comment Share on other sites More sharing options...
InspireByReason Posted October 15, 2016 Share Posted October 15, 2016 Graham mentions that one should show concern for buying cheap companies at the height of a market but what I never understood is if you are looking at every investment as buying shares in a business why should a cheap price dissuade you from buying in regardless of where the market is as a whole? Is it only because there may be even cheaper prices right around the corner? Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted October 16, 2016 Share Posted October 16, 2016 I had my eye on this one SPRT...also not entirely sure if it's negative enterprise strictly defined, but life insurers seem extraordinarily cheap some of them trading at 0.5x tangible BV and less than 10x P/E. Also check out NWLI. 1/2 TBV. Around 8x PE. Despite all the huballo about interest rates 1/2TBV is a pretty good margin of safety. NWLI has traded well under TBV for years and the management seems uninterested in repurchasing shares or taking any other steps to do anything about it. Link to comment Share on other sites More sharing options...
scorpioncapital Posted October 16, 2016 Share Posted October 16, 2016 If a discount is baked in, just buy when there is a discount to the discount :) Link to comment Share on other sites More sharing options...
rukawa Posted October 17, 2016 Author Share Posted October 17, 2016 Related thread: http://www.cornerofberkshireandfairfax.ca/forum/strategies/screen-stocks-with-negative-enterprise-value/ Incidentally the main thing I am seeing when looking into negative enterprise stocks is a lot of chinese reverse mergers which I am avoiding. You can detect the reverse mergers by looking at the officers and directors on Google Finance. I guess I am racially profiling because I avoid anything with a Chinese name. Link to comment Share on other sites More sharing options...
LowIQinvestor Posted October 17, 2016 Share Posted October 17, 2016 SXCL was last time I checked. Below Net cash on balance sheet. Issues with oil services exposure though. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted October 17, 2016 Share Posted October 17, 2016 SXCL was last time I checked. Below Net cash on balance sheet. Issues with oil services exposure though. I looked at SXCL last week. I believe it is trading just over net cash at the moment. Their oil services businesses are strongly oriented towards the Bakken. This, in my mind, means they may be permanently impaired as E&Ps continue to move away from the Bakken in favor of the Permian, etc. I can't say that I'm a fan of their sports segment either Link to comment Share on other sites More sharing options...
rukawa Posted November 1, 2016 Author Share Posted November 1, 2016 Samsung Climate Control is a pretty cheap stock. Not sure how the Korean market works though. Price to tangible book is like 0.5. Link to comment Share on other sites More sharing options...
KJP Posted November 8, 2016 Share Posted November 8, 2016 The companies discussed in this blog post may interest you: http://www.nonamestocks.com/2016/11/comx-and-sima-updated-numbers.html Link to comment Share on other sites More sharing options...
rukawa Posted November 9, 2016 Author Share Posted November 9, 2016 The companies discussed in this blog post may interest you: http://www.nonamestocks.com/2016/11/comx-and-sima-updated-numbers.html Excellent thanks. Link to comment Share on other sites More sharing options...
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