2 Current net asset value
Some investors buy stocks listed in the US that trade below their liquidation value because they believe they can get a huge return once the market revalues the price of the shares to near or above value. liquidation.
Should the company encounter financial difficulties leading to insolvency, these shareholders could, in theory, still benefit from the distribution of the net asset value, which will most likely be higher than the purchase price. The liquidation value of so-called net asset value stocks is calculated as “current assets less total liabilities”.
So, short-term investors may want to consider the two companies listed below, as their stock prices are trading below their current net asset value per share (NCAVPS).
The first stock that short-term investors might consider is InspireMD Inc (NSPR, Financial), a Tel Aviv, Israel-based medical device company focused on the development and commercialization of proprietary stent technologies to treat vascular and coronary heart disease in the Middle East and globally.
The stock was trading at a price of $ 4.34 per share at Friday’s close, which is lower than the current net asset value per share of $ 4.85 in the June 2021 quarter.
After falling 6.55% over the past year, the stock now has a market cap of $ 34.35 million and a 52-week range of $ 3.60 to $ 22.20.
TWO SIGMA ADVISORS, LP leads the group of major fund holders in the company with 1.74% of shares outstanding, followed by
Jim simons (Shops, Portfolio) with 1.03%.
On Wall Street, a sell-side analyst recommends a buy rating and a target price of $ 16.50 per share for the stock.
The second stock that short-term investors can consider is Qudian Inc (QD, Financial), a Chinese online supplier of consumer credit products in the People’s Republic of China.
The stock was trading at a price of $ 1.52 per share at Friday’s close, falling below the current net asset value per share of $ 6.48 in the June 2021 quarter.
After rising 23.4% over the past year, the stock now has a market cap of $ 384.70 million and a 52-week range of $ 1.17 to $ 3.82.
ACADIAN ASSET MANAGEMENT LLC is the leader among the company’s major fund holders with 3.05% of the shares outstanding, followed by Greenwoods Asset Management Ltd with 2.16% and STATE STREET CORP with 2.09%.
Wall Street sell-side analysts recommend a median conservation rating for this stock with an average target price of $ 12.11 per share.
Disclosure: I have no position on the titles mentioned.
Also check out: