How to Avoid Value-Traps with Net-Net Stocks

Net-net stocks are those which sell below liquidation value and are major bargains. Avoid being a victim of value traps by only investing in net-nets which: Generate revenue, experience NCAV Burn of less than 25% annually, aren’t based in China or if you are risk averse, aren’t Chinese, have sold at a price above the current NCAV in the past 5 years, and are not issuing shares.

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