Few publicly traded companies are more obscure than George Risk Industries, a small Nebraska manufacturer of security alarm products. With a market capitalization of $21 million and very low trading volume, the company is far too small to attract attention on Wall Street. Read this article for more details.
Hurco Companies, Inc (HURC) is a global industrial automation company that designs and produces interactive computer controls, software and computerized machine systems for the worldwide metal cutting and metal forming industries. The company is based in the United Sates but has extensive overseas manufacturing operations and customers. At current prices, Hurco combines the best of both worlds: Quality and Value.
I have always believed that investors with an overly optimistic view of the world have an inherent disadvantage and can be predisposed to overpay for securities. While I do not advocate being a pessimist in general, there are advantages that clearly exist for investors who attempt to think of all the possible factors that could go wrong when evaluating an investment. The need for a healthy dose of “pessimism” is nowhere more urgent than when an investor is evaluating bargain basement stocks selling for under net current asset value.
Benjamin Graham pioneered a technique that holds a great deal of promise in today’s market. Graham’s concept of identifying bargain issues, or Net-Current-Asset Value Stocks (NCAV), is as relevant today as when he wrote about it in The Intelligent Investor in 1949. This post takes a look at this concept and how it might be applied today.