Nearly Empty Nets
Without a doubt, it's been a very strange and equally boring year for one of my favorite corners of deep value: Companies that are trading below net current asset value (NCAV), or net/nets. While some interesting names have qualified for what is a fairly stringent screening process, the sheer number of net/nets has been low. I attribute this to a couple of factors.
First, although markets have been volatile at times this year, especially during the second half of the year, there has not been enough of a shakeout in order to drive the "throwing the baby out with the bathwater" effect that tends to hit the lower quality names typically found in net/net land. At this point, it appears as though the markets may end the year about where they started, and flattish market conditions typically aren't a great environment for net/nets. Second, and this is anecdotal at best, there's been a proliferation of research in the net/net arena, which shines a greater light on the potential opportunities....384 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.