Table of Contents
About the Author ix
Preface xi
Part 1 What Is Net-Net Investing? 7
1 Net-Net Investing Defined 9
2 The Detail of the NCAV Formula 15
3 A Closer Look at Graham's Net-Net Working Capital Formula 25
4 Why Does Net-Net Investing Work? 34
5 Why People Avoid Buying Net-Net Stocks 44
6 How the Penny Stock Prince Could Butcher Your Portfolio 52
Part 2 The Evidence That Net-Net Investing Works 57
7 Eight Lessons from Exceptional Net-Net Stock Studies 59
8 Three Net-Net Stock Gurus to Model 81
9 My Own Net-Net Stock Portfolio Returns 116
Part 3 Net-Net Investing Method 129
10 The Net-Net Hunter Scorecard 131
11 Step-by-Step Stock Selection 147
Part 4 Tactics: Net-Net Investing Best Practices 159
12 My Attitude Towards Money-Losing Net-Net Stocks 161
13 Past Earnings and Existing Operations 165
14 How Burn Rate Increases Risk and Reduces Profit Potential 170
15 Market Cap - Don't Assassinate Your Small Investor Advantage 178
16 How I Sidestep the Problems of Low Liquidity and Large Bid-Ask Spreads 183
17 Share Buy-Backs - Befriend the Cannibals 191
18 Chinese Reverse Mergers - Financial Poison 198
Part 5 Net-Netcase Studies 203
19 How Insider Ownership Led Trans World Entertainment to Massive Returns 205
20 GTSI Corp.'s Soft Catalyst Earned Me 85% in Five Months 210
21 How Debt Killed Albemarle & Bond Holdings 215
22 The (Almost) Perfect Net-Net Stock 223
23 Forgiveness - How Improving Fundamentals Caused Me to Bend One of My Core Principles 232
Epilogue: Build Your Character 245
Bibliography 247
Acknowledgements 252
Index 253