Top 10 Stocks Trading Below Net Current Asset Value

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 |  Includes: ACTI, ADPT-OLD, DITC, FLXS, GD, HLYS, LEU, TWMC, VOXX, WMAR
by: Jon Heller, CFA

The combination of volatile markets and economic uncertainty typically provides fertile ground for Net/Nets. Companies already in questionable shape can be beaten into submission, ultimately finding their way onto one of our lists of companies trading below net current asset value.

Sometimes this provides opportunity; sometimes it's the manifestation of Mr. Markets' survival of the fittest. In any event, we are starting to see some new names on the list. More interestingly, some are profitable on a trailing 12 month basis.

Top Ten Net/Nets By Market Cap

Usec (USU)

  • Price: $5.03
  • NCAV: $652.3
  • Market Cap: $556
  • P/E: 5

Adaptec (OTC:ADPT-OLD)*

  • Price: $2.95
  • NCAV: $394.7
  • Market Cap: $357
  • P/E: NA

Audiovoxx (NASDAQ:VOXX)*

  • Price: $10.95
  • NCAV: $272.2
  • Market Cap: $250
  • P/E: 25

Force Protection (NASDAQ:FRPT)

  • Price: $2.97
  • NCAV: $194.7
  • Market Cap: $202.7
  • P/E: 4

Note: Company currently has a delinquent 10K filing; balance sheet data is as of 9/30/07

Heely's (NASDAQ:HLYS)

  • Price: $4.31
  • NCAV: $116
  • Market Cap: $116
  • P/E: 4.5

West Marine (NASDAQ:WMAR)

  • Price: $5.48
  • NCAV: $146.8
  • Market Cap: $120
  • P/E: NA

Trans World Entertainment (NASDAQ:TWMC)*

  • Price: $3.5
  • NCAV: $205
  • Market Cap: $109.2
  • P/E: NA

Activeidentity (ACTI)

  • Price: $2.18
  • NCAV: $108.9
  • Market Cap: $99.8
  • P/E: NA

Hampshire Group (OTCPK:HAMP)

  • Price: $9.5
  • NCAV: $88.7
  • Market Cap: $74.7
  • P/E: 25.3

Flexsteel Industries (NASDAQ:FLXS)

  • Price: $11.47
  • NCAV: $75.7
  • Market Cap: $75.4
  • P/E: 7.8

Ditech Networks (NASDAQ:DITC)*

  • Price: $2.92
  • NCAV: $86.1
  • Market Cap: $76.1
  • P/E: NA

*Companies denoted are members of the proprietary Cheap Stocks 21 Net/Net Index

As always, data for net/nets is a moving target, and it is possible that some of the names on this list will no longer qualify once the next quarterly earnings and financial statements are released.

Disclosure: The author does not have positions in any of the companies mentioned. The author will not trade any of the securities mentioned (buy, sell, short) for at least two weeks following the date of this post.