One way to determine how cheap or expensive stocks are in the local stock market is to look at the number of net-net stocks that are available. A net-net stock is a stock with a market capitalisation that is lower than its net current asset value. The net current asset value can be calculated using the following formula: Net current asset value = Total current assets – Total liabilities In theory, a net-net stock is a steal as investors can get a discount on the company’s current assets, such as cash, after stripping off all liabilities. Moreover, the company’s fixed assets, such as properties, are thrown into the mix for free. Having said that, net-net stocks are usually businesses that are in serious trouble and/or have terrible business fundamentals. This means that investors

One way to determine how cheap or expensive stocks are in the local stock market is to look at the number of net-net stocks that are available. A net-net stock is a stock with a market capitalisation that is lower than its net current asset value. The net current asset value can be calculated using the following formula: Net current asset value = Total current assets – Total liabilities In theory, a net-net stock is a steal as investors can get a discount on the company’s current assets, such as cash, after stripping off all liabilities. Moreover, the company’s fixed assets, such as properties, are thrown into the mix for free. Having said that, net-net stocks are usually businesses that are in serious trouble and have terrible business fundamentals. This means that investors who