NPK recently announced that a big customer(Target Stores, I think)would be scaling back their purchases from NPK in favor of competitors from overseas. I don't know how this turn of events will "shake out" for NPK going forward.
When I do my screens for potential NetNets, I don't use a market cap, institutional ownership or trading volume filter. The fact that the companies that I posted are mostly very small companies is not by design. To me, it doesn't matter whether the company is big, small, popular or semi-illiquid. What matters most for my NetNet portfolio is the margin of safety provided by buying at a great price. These companies, as you point out, are not for everybody. Nor is my intent(by posting them to Paul)to advocate that anyone believe that I know anything about how to pick a good company for investing in. It's just that we have had some discussions here about Graham's use (when he was running a type of mutual fund)of the technique of buying a basket of 30 or 40 NetNet-type stocks, and I was offering these as candidates for such a portfolio.
NetNets are just one of the strategies I use to evaluate which companies I want to invest/speculate in. I happen to feel that, in the kind of market environment we're currently experiencing, this evaluation strategy yields more candidates than it has in many years, so I am currently concentrating my energies in these analyses.
Timba |
