A Potentially Perennial Net/Net
All you need is a little pullback, and potential value will be revealed. That's what we are starting to see as the markets grapple with more turmoil in Europe, none of which should be a great surprise. But when it happens, the more marginal names get jettisoned first and, typically, get slammed harder. That's when I start to see new life breathed into some of the deep value techniques I utilize.
In Monday's column, I discussed that Ingram Micro (IM) was again trading below net current asset value (NCAV). Today, we can add Benchmark Electronics (BHE) to the list. While not as big as Ingram in terms of market cap, Benchmark is still decent-sized for a net/net, with a current market cap of about $825 million. It's also profitable, trading at just under 20x trailing earnings. That may not seem cheap to a value investor, but it's acceptable when you consider that the typical net/net is in the red, struggling to recover....257 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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