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-
Jake: -net-net Pharma or the below cash Pharma.
Tobias: I think the index is what you’re looking for there.
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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