Is Key Tronic Corp (KTCC) a good example of what Graham refers to as a cigarette butt company? It appears that the actual intrinsic value of KTCC is 6.90 and the last close is 4.09 which is 41% below the actual intrinsic value. I'm used to trying to buy in at 30% below Graham's Defensive Price as encouraged to do so by "The Intelligent Investor" but 41% below the actual intrinsic value seems like quite an extraordinarily good opportunity.
My question is mostly why is the "Enterprising Price" of 1.13 less than the Net-Net Price of 6.90? I thought the Defensive Price was the most liberal judgments of a stock's value, the "Enterprising Price" somewhat less demanding and therefore should only be purchased if the price is significantly lower than the Defensive Price, and the "Net-Net" having even
less expectations of it and therefore should be purchased only if it is super dirt cheap which I would think would be even less than the "Enterprising Price," but in this case the "Enterprising Price" is higher (6.90) than the Net-Net Price. I think I saw this in another case as well. Thank you for any clarification on this situation. I hope you are enjoying your weekend. :)