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Our “Super Cheap Stock” Series
If you’ve been following this blog since our launch in May, you might remember reading these articles!
- 29 May 2020: You can buy these companies for less than the company’s CASH, after paying off all liabilities
- 10 Jun 2020: (Part 2) You can buy these companies for less than the company’s CASH, after paying off all liabilities
In Part 1, we screened for companies that were trading BELOW its “cash minus total liabilities”. This would imply that if such a company was wound up and all liabilities are paid off, shareholders would get paid back a higher value in cash than what the shares are trading at on the stock market.
In Part 2, we sifted through the 10 shortlisted companies to find one to buy! That company was Tsutsumi Jewelry.
The Final Update
We’ve closed our position on Tsutsumi Jewelry today, so this is the final update for this series.
We bought Tsutsumi Jewelry on 11 Jun 2020 (after publishing Part 2), at JPY 1,844.5 per share.
This morning, we sold our position at JPY 2,403, a profit of 30% and outperforming Japan’s Topix Index by 25% over our investment period. Since the stock has rallied, the company is NO LONGER trading below its “cash minus total liabilities”. The stock now trades of 0.6x P/B (vs our entry at 0.45x P/B) , the highest level in the past three years of trading.
That will be our final update for now! Thank you for following our investment journey. We are always actively watching out for interesting trade ideas – drop us a note at [email protected] if something’s caught your eye!
Our Trades
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