8 Cheap Stocks Trading Below Net Net Working Capital

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Includes: FORD, HLYS, INSM, NCTY, SIG, SODI, TSRI
by: Jae Jun

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
OTCQB:SODI $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.
Click to enlarge

8 Cheap Stocks Below Net Net Working Capital

Disclosure: I own INSM at the time of writing.