On July 17, 2009, I ran a Yahoo Finance stock screen for stocks trading at a low P/B and relatively high cash per share. I then looked at the individual balance sheet of every stock and compiled the list below of all stocks from the screen that were trading at less than 1.1 times their net-net working capital (NNWC).
I have been following their performance and below is an update (original post here):
(1 – NUHC was acquired at $7.00 per share by Arrow Electronics (ARW) during the study period)
As you can see, the S&P 500 increased 40.7% between 7-17-09 and 3-2-11 (23.3% annualized), while on average, the NNWC stocks increased 81.3% (44.1% annualized) over the same period.
Of the 37 NNWC stocks, 12 underperformed and 25 outperformed the S&P 500 during this period.
Disclosure: Author has no positions in any of the stocks mentioned in this article.