Yes that right, a London listed (AIM) profitable company selling for 8% of it’s net tangible asset value.
How did I find this stock?
By using a bespoke screener in ADVFN.
Which is free.
As you can imagine a stock selling that low is not without it’s problems.
But still, a stock selling that low should be included in a diversified portfolio hence why I’ve added it to The Model Portfolio.
Here are some very interesting numbers:
- Current PE Ratio: 0.51
- Basic EPS: 137p
- Return On Equity: 13.7%
- Return On Capital Employed: 16%
- Operating Margin: 27%
- Debt To Equity Excluding Intangibles: 0.04
- Current Ratio: 8.1
I think you get the idea.
But this is an AIM listed stock so any number of things could happen that could sour this investment including serial placings, options hop-scotch or a simple game of balance sheet destruction.
Still, it’s in Benjamin Graham/Walter Schloss bargain basement territory, especially at such a low price in relation to it’s stated assets.
I get the feeling that this one is going to make me feel sea-sick.
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Image: Expensive 2