You can still find bargains out there. The quality may have dropped but they are still out there.
The reason why small investors can out-gain the big boys is due to these small-to micro-cap companies. Include OTC stocks and you’ve got yourself a vast empty playing ground filled with deep value investing opportunities.
Here is a list of 8 very cheap stocks, all trading below my favorite metric, net net working capital. Had to go through about 70 stocks to find these 8 that are still cheap compared to their asset value.
|Ticker||NNWC Per Share||Current Price||Discount||Comments|
|SODI.OB||$2.4||$2.2||8%||Looks to be a good pick. Good SODI write up. Go to the value investing forum. |
Assets look to be of high quality, reliable with very little debt. Ongoing basis stock valuation at around $4.50, which is a significant discount to intrinsic value.
|FORD||$2.64||$2.02||23%||A value stock that has popped up quite often. Discussed under FORD topic in the forum as well.|
|NCTY||$8.52||$7.18||16%||Chinese company involved in multiplayer internet games. Mostly made up of cash.|
|INSM||$0.92||$0.74||19%||Insmed still very cheap. Refer to my latest valuation and INSM financial statement analysis.|
|SIG||$33.73||$25.41||25%||Missed picking up SIG when it was below $10. Should've, would've, could've. |
Still cheap but a lot of it is made up of receivables and inventory.
|HLYS||$2.36||$2.05||13%||Not sure how this fad company will get back up. Company has plenty of cash but I wonder whether a turnaround will ever be possible.|
|TSRI||$2.57||$2.35||8%||An IT outsourcing company. Cheaper than MHH, but I like MHH much better which is why I never bought it.|
|AMGY||$0.6||$0.5||17%||A tiny OTC company. Another Chinese company that uses American in their name. No idea why. But I've realised I don't like any that do.|
Disclosure: I own INSM at the time of writing.