Net-Net Number: Overall Market Implications & Conclusions

“Perhaps one could even determine whether the market level was getting too high or too low by counting the number of issues selling below working capital value.”  – Benjamin Graham

Working paper as contributed to SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2339319

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2 thoughts on “Net-Net Number: Overall Market Implications & Conclusions

  1. congratulations, another net net professor who needs to abuse graham’s name to justify/glorify his own existence….

    this “scientific study” is taking generalization to a whole new level…..

    would you be so kind to share the details behind exhibit II and reveal which net nets exactly support this statement:

    “As of the time of this writing on Aug. 1, 2013 or some twenty months later, this same NNN has dwindled down to under seventy companies”

    • Thank you for commenting, i appreciate it. Good to know someone reads this, for better or worse;)

      On the first point, it is pure imitation (which is the sincerest form of flattery) i am a practitioner (not an academic) simply trying to apply and add to the body of work Mr. Graham created as best i can, in hopes that others which come after me will do the same as there can be no progress without building upon prior foundations.

      In regards to the second point made, i can certainly provide the names of a few, currently outstanding, domestic (US) net-nets (Fortune Industries Inc., Peerless Systems Corp., Hastings Entertainment Inc.) the quality (or lack thereof) of the companies mentioned alludes to the current state of the market writ-large as of this writing. The remainder of the names i will leave you the fun of uncovering yourself, seeing as how they are not critical to the conclusions of the paper overall, nor is there such a thing as something for nothing in this world.

      Sincerely,

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