Post by
Possibleidiot01 on Dec 03, 2022 4:06am
net-net , Robert Tattersall
The Globe and Mail reports in its Friday, Dec. 2, edition that tax loss season is a time when many investors choose to part company with stocks that have been a disappointment to them. The Globe's guest columnist Robert Tattersall writes that this presents an opportunity for bargain hunters looking for value in washed-out stocks. Mr. Tattersall likes Ben Graham's "net-net" working capital screen. Mr. Tattersall says he asked Simcoe Capital Management's David Sandel to run a net-net screen on his global database. Mr. Sandel came up with 1,265 names. Of the 36 Canadian names on Mr. Sandel's list, 11 were mines, metals and precious metals, which are tough to analyze for the traditional value investor.
The median market cap of the entire group was only $10-million, so even an individual investor will find them illiquid. Ranked by decreasing market cap, the top 10 Canadian net-net stocks range from $375-million down to $24-million. They are listed here in the same descending order. Neo Performance Materials, Thinkific Labs, Velan, Goodfellow, Cardiol Therapeutics, Buhler Industries, McCoy Global, Medicenna Therapeutics, Aeterna Zentaris and Neovasc. Of the 10 stocks, Mr. Tattersall says he already owns McCoy Global.