Endwave (ENWV) a NCAV stock – Illusion or Reality?
Today I offer up a Net Net stock Endwave (ENWV). In an effort to bring choices to beginning and small time investors I will be presenting ideas, even if I don’t buy them. When I buy a stock I will always state how many shares I bought at what price and how much of a brokerage fee I paid, so it is clear what is actually possible to accomplish with a small amount of money or if you are just starting out.
Nu Horizon Electronics (NUHC) – A NCAV stock
It takes almost as much research to discover why you don’t want to invest in a company as why you do. But going through the process is important and we make different decisions for different reasons. Nu Horizons came to my attention in the NCAV Newsletter at Gurufocus that I have posted about before. When they recommended the stock it was trading around $3.85 and they had NUHC’s NCAV value as $6.81. In their words, “a 71% upside.” Very interesting. I began to investigate further.
Solitron Devices (OTC:SODI) A Net Net Stock added to Portfolio
Today I bought 1500 shares of Solitron Devices (OTC:SODI) at $2.22/share with a $4.95 brokerage fee for a total of $3334.95 investment. For someone maintaining a small portfolio this is a large investment.
Net Net (NCAV) Stock Screeners
I am going to give up the best net current asset value (NCAV) stock screeners I know, but it is really a plea to find new ones, because the one’s I know have become either dated, less relevant, or are not cheap. First, for the beginning investors, I will describe a stock screener. As it’s name implies a stock screen sifts through stocks and winnows the wheat from the chaff. On a good one, you get to decide what is chaff and what is wheat. On the less than great ones, the you are told what is wheat and chaff.
Qiao Xing Universal Telephone, Inc. (XING) Net Net Stock – Buy
On Friday I purchased 1500 shares of Qiao Xing Universal Telephone, Inc (XING) at $1.91/share with my TradeKing account, so my brokerage fee was $4.95. Despite the name, Qiao is not a telephone company any more. They have recently focused their business to mining operations and are divesting themselves of their phone subsidiaries.
VaxGen (VXGN) Closed Position
I have sold my position in VaxGen at $.64/share. I originally opened my position in VXGN in August for $.54share because it was a Net Net stock whose potential was actually in the $.78-$.90 share range. Actually I sold out on November 18th, using a limit order at $.64 my return was about 18% in a little over three months.
Finding Investments Ideas in the Toxic Waste
One of the ways you can find investment ideas is to look in the toxic waste stocks. Not literally of course. No, I refer to stocks that have taken a dive bomb in price. This morning I was looking at Google finance and I saw that Poniard Pharmaceuticals (PARD) had tanked a fantastic 75% on news that its lead drug candidate was rejected?
A possible Net Net stock – but not for Me
I want to highlight an investment idea that Jae over at Old School Value posted: Insmed Inc. (INSM). I decided rather than ignore investment ideas that I don’t buy into, I would mention them and let you the reader decide if it interests you. Check out his evaluation here of INSM. He makes a good case for the stock. Some of you may want to invest in it. Jae is a very smart guy who has had lots of good advice, you could do worse than follow his lead.
What is a Net Net Stock?
What is a Net Net Stock? First, if you don’t know who Benjamin Graham is we need to introduce him to you. He was the godfather of what is now called Value Investing. Ben Graham was an interesting dude who began his trading style in the depression.
New Net Net Position Added Vaxgen Inc. (VXGN)
I have added a net net position in a stock I have been following for a while: VXGN.
But don’t do what I just did. Please! If you already know you are value investor who understands how to value a stock from an assets perspective, go ahead do what you like. But if you are a beginning investor still trying to figure this out, don’t invest in this stock.
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