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
Trans World Entertainment Corp. (TWMC)
Mkt Cap: $146
Bel Fuse Inc. (BELFA)
Mkt Cap: $92
Bexil Corp (BXL)
Mkt Cap: $30
Boss Holdings (OTCPK:BSHI)
Mkt Cap: $16
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.