How to perform a net-net calculation
Determining whether or not a company is a good target for a net-net strategy is pretty simple if you have a short list of companies. All you need is the current stock price of the company, the value of its current assets, the value of its total liabilities, and the total number of shares it has issued.
When you divide the current assets minus the total liabilities by the number of shares, then multiply by 66%, you'll get a conservative estimate of what the value of the company should be if it were liquidated tomorrow. As long as the stock price is less than that number, you're gold. Buy the stock if you think it's safe to do so.
The formula is ( (Current Assets - Total Liabilities) / Number of Shares ) x 0.66. If this number is greater than the current stock price and you're confident it's a good deal, then buy -- simple as that. Be ready to sell when the stock price experiences a big bump.