Near-Low Opportunity Framework for Net-Net and Microcap Stocks

"The margin of safety is always dependent on the price paid." - Benjamin Graham

Start with the Near-Low Setup

• Open the Near-Lows scanner and rank names by distance from low, recent drawdown, and liquidity.
• Review each symbol page to compare price behavior with volume and short-interest changes.
• If snapshots look stale, refresh market data and filings before acting on the signal.

Three-Part Filter Before Entry

• Balance sheet quality: prioritize positive working capital, manageable debt, and a defensible NCAV or NTAV discount.
• Catalyst path: look for events like asset sales, buybacks, tender activity, restructuring progress, or operating stabilization.
• Sentiment and positioning: use Short-Interest to judge whether pessimism is excessive or justified.

"In the short run the market is a voting machine, but in the long run it is a weighing machine." - Benjamin Graham

Trade Plan for Near-Low Stocks

• Enter in tranches to manage volatility and avoid overcommitting on the first bounce.
• Define exit rules in advance, such as value realization at NTAV or a pre-set return target.
• Use a thesis stop: exit if liquidity, balance-sheet quality, or catalyst credibility deteriorates.

Pair with Other Site Signals

• Rising volume with stable share count (see Share-Changes) can support a durable low.
• Near-lows plus dilution or financing pressure can indicate a value trap rather than an opportunity.
• Use companion guides: Margin of Safety and Catalysts for Net-Net Re-Rates.

Compliance note

Educational only. Thin microcaps can move fast; manage order types, slippage, and risk.