synear_products
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?

AsiaPacFinance.com 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!

APFin_netassets

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.

Counter NameLastChange
AEM Holdings2.350-0.010
Best World2.470-
Boustead Singapore0.955-0.010
Broadway Ind0.129-
China Aviation Oil (S)0.915-0.005
China Sunsine0.410-0.005
ComfortDelGro1.500-
Delfi Limited0.895-0.010
Food Empire1.270-
Fortress Minerals0.3200.010
Geo Energy Res0.310-
Hong Leong Finance2.490-
Hongkong Land (USD)3.1100.040
InnoTek0.525-
ISDN Holdings0.3150.005
ISOTeam0.041-
IX Biopharma0.040-0.003
KSH Holdings0.250-
Leader Env0.051-
Ley Choon0.045-0.001
Marco Polo Marine0.0670.001
Mermaid Maritime0.138-0.003
Nordic Group0.310-0.030
Oxley Holdings0.0910.002
REX International0.137-
Riverstone0.815-0.005
Southern Alliance Mining0.430-0.015
Straco Corp.0.500-
Sunpower Group0.210-
The Trendlines0.069-
Totm Technologies0.022-
Uni-Asia Group0.825-
Wilmar Intl3.5200.040
Yangzijiang Shipbldg1.750-0.030