Record Number Of Net-Nets Since 1999 | The Acquirer's Multiple®

In their recent episode of the VALUE: After Hours Podcast, Brewster, Taylor, and Carlisle discussed Record Number Of Net-Nets Since 1999. Here’s an excerpt from the episode:

Tobias: But then more specific to value, I went and looked at the number of net-nets that are available.

Jake: Ah, yes.

Tobias: And there are a record number of net-nets available since 1999. [crosstalk]

Jake: Wow, it’s more than 2008.

Tobias: More than 2008, which I was surprised by. Yeah. This is just US only. This is US only.

Jake: So, the tide goes out and there’s just all kinds of garbage sitting on the beach, huh? [chuckles]

Tobias: It really is garbage. I want to have a look at this. Well, I shouldn’t say, there’s a lot of Pharma in it. There’s a lot of biotech that has raised money and has traded low down below. So, it looked like just eyeballing. It was 88% Pharma. But I had some people asking for all of Pharma net-nets and sub-liquidation. So, there are lots around.

Jake: If you had a certain and good ETF for that, that lives that’s just all the-

Tobias: Net-nets.

Jake: -net-net Pharma or the below cash Pharma.

Tobias: I think the index is what you’re looking for there.

Jake: [laughs]

Tobias: I think XBI.

Jake: I don’t get you. Oh, okay.

Tobias: I just make sure that’s true. What is XBI? Yeah, that’s the spider. S&P biotech ETF, it’s up 6% today. It’s 12.5% over the last five days. Yeah, I think that the index gets you pretty much there.

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