This article appeared first on The Stock Market Blueprint Blog.
In this edition of Watchlist Wednesday, we highlight five of the top stocks qualifying for the Net-Net Working Capital (NNWC) screen.
NNWC is similar to the NCAV screen except it is more stringent. Graham knew that companies undergoing liquidation would not necessarily sell all current assets at book value.
In order to add a level of safety, he felt it beneficial to discount the accounts receivables and inventories when calculating current assets.
NNWC Description
Like NCAV, NNWC finds stocks trading for less than the difference between current assets minus total liabilities, and no regard is given to the companys long-term assets or future prof…
Read the full article at: http://www.valuewalk.com/2016/11/buy-5-stocks-less-liquidation-value/
