Tech: Cheap habit

Numerous US technology and biotechnology firms are valued at less than the net cash on their books. Most such situations shouldn’t exist in theory, yet often do following a market panic. Legendary investors Graham and Dodd pointed out similar opportunities following the 1929 market crash, calling these sorts of stocks free cigar butts. Many of the firms concerned may be no better than trash, but activists and value investors might be able to drag a last puff of value from some of them. Close to...