Top Five Profitable Stocks Trading Below Net Current Asset Value

by: Jon Heller, CFA

The markets continue to head higher, and although we are not perma-bear doomsday types, we are finding it increasingly difficult to find many names that are all that interesting--do we sound like a broken record yet? Bear in mind (no pun intended), this is not 2000, and stocks are not trading at obscene multiples, but our definition of value is sometimes rather narrow, and we often have to turn over a lot of rocks to find one gem. There are only so many hours in a day.

With that, this week we bring you a list of the top five profitable net/nets, (aka stocks trading below their net current asset value), in order of market cap. "Profitable" in this case means that a company has a trailing twelve month profit, no matter how miniscule. No rocket science here, but then again, we've never been accused of being rocket scientists. This list should be seen as the beginning of the research process, a raw list of potential ideas that demands much further scrutiny before any decisions are made, not a definitive buy list.

Top Five Profitable Net/Nets by Market Cap:

Atlantic Coast Entertainment Holdings Inc. (ACEH)
Mkt Cap: $158 million
NCAV: $216
Price: $16.35

Trans World Entertainment Corp. (NASDAQ:TWMC)
Mkt Cap: $146
NCAV: $209
Price: $4.69

Bel Fuse Inc. (NASDAQ:BELFA)
Mkt Cap: $92
NCAV: $148
Price: $35.77

Bexil Corp (BXL)
Mkt Cap: $30
NCAV: $38
Price: $33.3

Boss Holdings (OTCPK:BSHI)
Mkt Cap: $16
NCAV: $19
Price: $8.08

There you have it. Slim Pickings at best. To put in perspective, the total market cap of these five companies is less than $500 million, and we had to head pretty far down the market cap scale! That being said, proceed with caution. Smaller companies tend to be less liquid, and liquidity issues can be devastating to those not paying attention.

Disclosure: The author does not have a position in any of the stocks mentioned in this report.