Net Nets : a Value strategy

Investing / Portfolios
105

I’ve used magicformulainvesting.com before, they have a screener for free.

107

This is true in most cases as most if not all listed companies are limited liability companies. However, there are theoretically other corporate forms including unlimited liability companies where the shareholders would indeed by liable for the debts.

108

Did you ever look at coal? A few years ago this was one hugely down and out of favour with huge cash flows, dividends and valuable carbon in the ground. Whitehaven coal dipped below $0.50 even before covid and then peaked at over $10 in 2022. That’s >20x in 6 years. (or >10x in 2 years if you bought the covid dip). That’s not even counting the huge double digit dividends it paid out.

109

Yes, since last year I am long AMR. Very happy with it so far. Sadly i was not aware of it when it was trading at 2$/share, it must be one of the best performing stocks stocks since 2020. Almost a 200 bagger in 3 years.

I bought it around $140/share. I don’t remember if it was a net net at the time, but even with my quality bias it was way too cheap to ignore:

  • no debt on the balance sheet
  • generating $600 Million FCF per year
  • trading at the time at a market cap of roughly $1 billion… at this price they were buying back shares like crazy, i think since last year they must have bought back 40% of outstanding shares
1 Like
110

Hey Guys, are there any updates/stories worth sharing?
I just read into this and i’m really curious about how it went so far.

Thanks in advance and have a good week

111

This is gone from the internet. Any chance I could find this content somewhere else?

112

Sent you a PM.