Does Earnings Growth Matter When It Comes to Stocks Trading Below Liquidation Value?

Does Earnings Growth Matter When It Comes to Stocks Trading Below Liquidation Value? by Victor Wendl, author of  The Net Current Asset Value Approach to Stock Investing: A Guide to Purchasing Stocks Trading below Liquidation Value

The retail public enjoys the storytelling of growth stocks and the financial press is more than happy to fill that void. It is easy for an investor to fall into what finance professor, Jeremy Siegel, refers to as a “growth trap”, focusing on stocks with rapid sales and earnings growth in new industries that are highly disruptive. Humans have a predisposition to see patterns where none exist. Connecting the dots and extrapolating above average growth...