Chroma Investing

Value Investing for beginning & small time investors and the value investing strategies of Graham & Klarman

Reevaluting Facet Biotech (FACT)

Earlier in the month I discussed a non chroma portfolio sale of Facet Biotech (FACT) because I thought it explefied some of the non traditional techniques I apply to my value investing ideas. But this stock is one that keeps on giving. There are more lessons for the beginning investor.

Closed Position in Facet Biotech (FACT) a former Net Net Stock sort of

This is sort of a cheat. I purchased my shares of Facet Bitoech before launching this blog. It does highlight a few ways that I have diverged from the true religion of value investing, while still being a believer. What? I know and I haven’t even started drinking yet.

I purchased 200 shares of FACT on 4/23 at $8.95/share. It looked to me to be a pseudo Net Net stock. What does that mean? It means that when I bought FACT its liquidation value was slightly higher than I bought it for, but it didn’t have a traditional track record or characteristics of a true Net net stock, like a good revenue stream. It was also a spin-off of the drug development operations of PDL Biopharma, doing double duty for me.

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