I’ve made no secret of the fact my favorite types of investments are net-nets. Everyone defines net-nets differently; some people want stocks trading for 2/3 of net current asset value, some people want to discount things like inventory and AR, and others prefer if the business is trading for less than net cash.
I recently made a twitter bet with my friend Jeff from ragnar: I’d do a post this week if he did. Here’s me holding up my end of the bargain; Jeff, ball’s in your court!
So the OTC market shut down today appears to have lead to their pinksheet website malfunctioning, which hurt my time looking for pinksheet value. Instead, I spent a bit of time looking at USA Truck (USAK). It’s a really interesting situation, and while I don’t have an investment in it right now, I could see myself buying some at some point in the future.
Yesterday I posted a list of stocks I’d be going through hunting for value on the pink sheets. And, crazy as it sounds, literally the first ticker that popped up piqued my interest. I know it sounds unbelievable, but I swear I didn’t rig the rankings!
I’ve mentioned this several times, but my favorite way to find value stock is to take a list of pink sheet stocks and just work through them one at a time. Most of the stocks can be passed over or thrown out after a two second look…. but every now and then you’ll find a true gem. I’ve done this several times, and I’m actually shocked by the number of doubles and triples that this method had led me to invest in. The only problem to date is that I haven’t been aggressive enough in investing in them!!!
I wanted to do one last follow up on ALJJ.
Yesterday, I posted a seeking alpha article on ALJJ holdings and how I thought their new acquisition was set to unlock a ton of value. That post is now live to all readers.
Sorry, no new thoughts from me today. Instead, a few links from people much smarter than I am.