Top 10 Stocks Trading Below Net Current Asset Value

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 (ADPT)*

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

Audiovoxx (VOXX)*

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

Force Protection (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 (HLYS)

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

West Marine (WMAR)

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

Trans World Entertainment (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 (HAMP)

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

Flexsteel Industries (FLXS)

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

Ditech Networks (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.

Comments

[kkin365]

Thanks for an excellent coverage. On FRPT, what are reasons behind its being late in filing?

[Abe Mishima]

Beware the heavily shorted stock, and the above list is loaded with these wounded birds. USU's life and death hang on the ACP, a breakthrough method of uranium enrichment. Proven in the lab, it remains to be seen if it will function without cost distractions on a production basis. The slightest hint of uncertainty will cause the stock to tumble below $4. Promising developments or just plain optimism can vault the stock into the high 5's and above. We won't know for sure until 2009/2010. There is also a decision by the Supreme court on anti-dumping that could greatly affect USEC's fate. Is enriched uranium a finished product or a raw material? The court is very patriotic. They will decide on the formet, irrespective of legal merit, and save USEC. Disclosure: I hold a small interest in the company, but am aware of its vulnerability to shorting and bad news.

[jerryvanee]

FRPT is a relatively new (MRAP producing) company that once hitting the NASDAQ should have hired competent accountants but the prior management didn't and we stockholders have seen the PPS drop from $30+ to $3. Part of that was due to DoD's awarding contracts to poorly made competitors' products. FRPT trucks are a key to victory in Iraq/Afghanistan , especially if the "Cheetah" gets major contracts from DoD,Brits,Iraqis,Canad... and other allies of the U.S.. FRPT has a sole source on the "Buffalo" and its "Cougar" vehicles have never had a death in over 2,000 IED/EFP explosions in the war zone.

[retvet242]

Evidently a contract resolution with a terminated supplier/vendor over materials under contract was mishandled...


On Apr 27 10:29 PM kkin365 wrote:

> Thanks for an excellent coverage. On FRPT, what are reasons behind
> its being late in filing?