Real Worth Stocks May-23 newsletter

Contents:

• May stock pick and research report

• Mental Model: Twaddle Tendency

• Stock Watchlist

• Model Portfolio Positions and Performance Update

• Sale of a portfolio position

In May’s newsletter, I have picked a consistently profitable Ben Graham net-net trading at 55% of net current asset value, which priced at 6x owner earnings, which is in Japan.

A net-net is a stock where the net current asset value (NCAV) is greater than the market cap: so if the whole company was purchased and liquidated, and all debts were paid off, the shareholders would be left with a profit. This means that it is very cheap!

NCAV is calculated as: Current assets (cash, receivables, inventory) – current liabilities (payables, short term debt, etc) – long term liabilities (long term debt, etc.). In this case, the NCAV is: Current assets ¥18.9B, (¥5.7B cash, ¥11B receivables, the rest is inventory etc) –