Introduction
In his book The Intelligent Investor, value investing guru Benjamin Graham discusses his success with “Net-Current-Asset, or Bargain Issues.” Graham defined these as stocks whose market cap was below the value of current assets minus total liabilities on the balance sheet. From the Depression through the mid-1950’s, many companies fit this criteria and Graham assembled a basket of them in his portfolio. Today, very few companies pass this screen so when we find one, it is worth digging deeper into the fundamentals to understand how the valuation got to be so low.
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