Benjamin Graham Net Nets Bargain is a demanding deep value 'bargain' investing strategy based on rules suggested by legendary investor, Benjamin Graham, who wrote The Intelligent Investor. This value approach looks for stocks that are trading at such a cheap price that you could buy the whole company and sell off all the assets at a profit with near minimal risk. It does that by finding shares with a market capitalisation of less than net net working capital. The calculation makes allowances for the fact that in a fire sale of assets, only a proportion of owed cash and inventory value would be recovered. Ben Graham explained: "No proprietor or majority holder would think of selling what he owned at so ridiculously low a figure? In various ways practically all these bargain issues turned out to be profitable and the average annual result proved much more remunerative than most other investments." Remember, risky and potentially troubled companies will be found using the Net Net rules. Ben Graham suggested diversifying between at least 30 stocks. more »
Price to Net Net Working Captal compares the Price to Benjamin Graham's valuation measure, Net Net Working Capital which is defined as Cash + Short Term Marketable Investments + Accounts Receivable * 75% + Inventory * 50% of Total Liabilities
This is the daily average of the cumulative trading volume during the last three months.
As an example, the 3 month average volume of Vodafone, admittedly a mega-cap, as of May 15th 2015 was 59,376,983.
Stockopedia explains 3m Avg Vol...
Large institutional funds cannot trade in and out of a stock without leaving their footprints, and learning to read the signs in daily and weekly volume is important. If current volumes are higher than previous volumes while price is increasing, it may be a sign of fund accumulation