SSW - Danaos Looks Like The Cheapest Stock In The Market

Introduction

What’s the cheapest stock you’ve come across? What multiple of GAAP earnings and free cash flow was it trading at? Is it possible for a company to trade at 1x earnings?

In 2009, I came across Valassis Communications (the ticker symbol was VCI). The company had $1 of EPS and FCF, yet the stock had gone down to $1.30. The company had a lot of debt, and if its business deteriorated, it would have been unable to service it, resulting in bankruptcy. But service it the company did, resulting in a more normalized multiple