Geoff Gannon's latest post is on net-nets, the importance of return on equity, and potential catalysts for net-nets.
A net-net is a stock selling for less than the value of its current assets – cash, receivables, inventory, and prepaid expenses — minus all liabilities. Basically, it’s a stock selling for less than its liquidation value.
In Ben Graham's day (during the depression) he could by net-nets that were selling for less than 2/3rds of their net current assets.
Warren Buffet once found a stock with $20 of cash that was selling for $3.