Seeking Alpha
Editor's notes: CHRM is a net-net with a buyout offer on the table. With the looming twist of next year's dividend, there are multiple routes to double-digit returns.


One of the most obvious deep value investments are stocks of companies selling below net current asset value. This is widely known: Benjamin Graham first wrote on these stocks in his famous book Security Analysis in 1934. Other market participants noticed his success resulting in a lack of net-nets to invest in during the 1950s. This was only temporary. During the 1970s net-nets appeared again. Graham noticed and just before he died he recommended investing in net-nets again.

Less well known is that others have been verifying the statistical foundation of his investment advice. The results are astonishing: several publications find average returns of around 30% when solely investing in net-nets for 20-25 years, see for example the ...

Only subscribers can access this article, which is part of the PRO research library covering 3,741 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: