Buy These 5 Stocks For Less Than Liquidation Value

Richardson Electronics, Ltd. (NASDAQ:RELL): Provider of electron devices, customized display solutions, and healthcare equipment businesses in North America, the Asia Pacific, Europe, and Latin America.

– Cash & Cash Equivalents (100%): $64 Million

– Accounts Receivables (75%): $16.5 Million

– Inventories (50%): $22.5 Million

– Total Liabilities: $22 Million

– Total Shares: 11 Million

– NNWC: $7.53

– Current Price: $6.04 (closing price on 11/8/16)

– Price/NNWC: 80%

Support.com, Inc. (NASDAQ:SPRT): Provides cloud-based software and services primarily in North America.

– Cash & Cash Equivalents (100%): $54 Million

– Accounts Receivables (75%): $7.5 Million

– Inventories (50%): $0 Million

– Total Liabilities: $11 Million

– Total Shares: 55 Million

– NNWC: $0.96

– Current Price: $0.78 (closing price on 11/8/16)

– Price/NNWC: 81%

Nuvectra Corp (NASDAQ:NVTR): A medical device company which develops and commercializes its neurostimulation technology for the treatment of various disorders in neuroscience and clinical markets in Europe.

– Cash & Cash Equivalents (100%): $84 Million

– Accounts Receivables (75%): $1.5 Million

– Inventories (50%): $0 Million

– Total Liabilities: $23 Million

– Total Shares: 10 Million

– NNWC: $6.01

– Current Price: $4.98 (closing price on 11/8/16)

– Price/NNWC: 83%

Implementation

As with the NCAV strategy, the NNWC approach requires a diverse group of stocks bought at steep margins of safety. This can be put into practice by regularly investing equal amounts in the qualifying stocks with the lowest prices in relation to net-net working capital.

Due to the nature of deep value strategies such as the NCAV, average investors will find numerous reasons not to buy the above stock. Disciplined investors, on the other hand, will find success following such a simple investment strategy.

You can build your own portfolio using the stock screens on TheStockMarketBlueprint.com.

Check out our Shadow Stock Portfolios to see real-world examples of implementing systematic investment strategies.

Mitchell Mauer is the Founder of TheStockMarketBlueprint.com. The Stock Market Blueprint is a site that finds value stocks for investors building long-term wealth. The site’s investment philosophy is anchored in principles established by Benjamin Graham and his most reputable followers over the last 100 years.

Additional Links:

(1) https://www.thestockmarketblueprint.com/net-networking-capital-screen/