stocks trading below liquidation value. oversold below cash held
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 days. But apparently Im wrong. It happens even today.
There are probably hundreds of net net cigar butt stocks at varying degrees of oversold or beat up levels. Some are losing money, some are not so much. The market just isnt interested in the accounting value in the business's balance sheet. How can that be so in a efficient market? So many of the large companies are priced perfect and looking to the future. But this tiny micro caps arent seeming to price an accurate today.
I thought it was just a thing that happened in history book, or in the depression days. But apparently Im wrong. It happens even today.
There are probably hundreds of net net cigar butt stocks at varying degrees of oversold or beat up levels. Some are losing money, some are not so much. The market just isnt interested in the accounting value in the business's balance sheet. How can that be so in a efficient market? So many of the large companies are priced perfect and looking to the future. But this tiny micro caps arent seeming to price an accurate today.
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