Synear is one of the largest quick freeze products producer in the PRC. Its earnings fell 41% to RMB54 m in 1H2011. Photos: Company

Benjamin Graham and David Dodd, widely considered to be the fathers of modern investing philosophy, had a deep affinity for value stocks.

They taught disciples such as Warren Buffett to assess companies in the most pessimistic possible scenarios. This makes sense.

These men wrote their famous book, Security Analysis, in 1934, when companies were liquidating at a fast pace during the Great Depression.

One of their favourite techniques: Net/net investing.

This looks at what a company would be worth in a time of absolute distress.

Specifically: what would a company have left if you piled up its cash, inventory and accounts receivable, paid off its liabilities and returned the funds to shareholders? picks out 11 stocks which have Net/net amounts larger than their market capitalization.

Yes, these companies are undervalued: if you take all their current assets and less of total liabilities, you end up with a value larger than their current market capitalization!


Glenn Ho is Director at AsiaPacFinance, serving retail investors globally through Research, Trading Strategies, and Investment Seminars. The financial portal collaborates with banks and brokerages by providing technical analysis and investor education across asset classes. AsiaPacFinance is also the first company to invent a stock screener that combines both fundamental and technical analysis. You can reach Glenn at AsiaPacFinance.

Share Prices

Counter NameLastChange
AEM Holdings3.800-0.070
Avi-Tech Electronics0.280-
Best World1.790-
Broadway Ind0.1200.002
China Sunsine0.405-
Food Empire0.6400.005
Fortress Minerals0.3750.045
Geo Energy Res0.350-0.010
Golden Energy0.7900.005
GSS Energy0.0490.001
ISDN Holdings0.405-0.010
IX Biopharma0.127-
Jiutian Chemical0.080-0.002
KSH Holdings0.350-
Leader Env0.056-
Medtecs Intl0.138-0.001
Meta Health0.025-
Nordic Group0.475-
Oxley Holdings0.1510.001
REX International0.235-0.005
Sinostar PEC0.1950.010
Southern Alliance Mining0.5000.120
Straco Corp.0.395-0.005
Sunpower Group0.270-0.015
The Trendlines0.093-
Totm Technologies0.102-0.001
UG Healthcare0.194-
Uni-Asia Group0.810-0.025
Wilmar Intl4.090-0.030
Yangzijiang Shipbldg1.400-0.010

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