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In October I introduced a “monthly” net-net watch list based on the GuruFocus Benjamin Graham Net Current Asset Value Screener (subscription required). I haven’t updated it on a monthly basis, so now it’s a quarterly net-net watch list.

July Net-Net Screen

I was prompted to introduce the October net-net watch list because of the performance of a watch list created on July 7, 2009 using the July 6, 2009 closing prices. The performance of the stocks in that first watch list to October 13 was nothing short of spectacular. Here is a screen grab (with some columns removed to fit the space below):

GuruFocus NCAV Screen

The average return to October across the nine stocks in the watch list was 45.5% against the return on the S&P500 of 20.05% over the same period, an outperformance of more than 25% in ~three months. Pretty impressive stuff.

Here is the performance NCAV screen updated to today:

While a 16.38% return over ~6 months is a good return, given that the watch list was up 45.5% to October, the last quarter was, to say the least, a little disappointing. It also underperformed the S&P500 by 5.12%.

October Net-Net Screen

The stocks in the October watch list are set out below (again, with a column removed to fit the space below):

GuruFocus NCAV Screen 2009 10 13

Here’s the performance of the October crop to Monday’s close:

36.85% is a fantastic return for a quarter, more so given that the S&P500’s return was so anaemic at 1.21%. It was obviously helped by the performance of Neltlist (NASDAQ:NLST), up more than 428% for the period. If we remove NLST from the portfolio, the portfolio return drops to 10.7%, which is still a good return, but nowhere near as impressive.

February Net-Net Screen (Updated)

I have captured the February screen which I’ll track over the coming months. If you want to see complete list online in real time, go to
GuruFocus Benjamin Graham Net Current Asset Value Screener (subscription required).

Full Disclosure: I have a holding in FORD and TSRI.

Source: Net-Net Stocks: Quarterly Watchlist