Cheap Stocks Annual Review

Here is our first annual Cheap Stocks review. Some of the companies we presented did well. In all, 14 were up, and 8 were down during the holding period. The average holding period return was 24.6 percent. Keep in mind, this is simply an average of each company's holding period return. It is not time weighted, and is for illustration purposes only.

Company(Ticker)Report Price,Report Date,Current Price (12/23/05),%inc(dec)

Duckwall Alco (DUCK) 17 12/5/2004 23.05 35.6


GIII Apparel (GIII) 6.3 12/10/2004 12.91 104.9


Avoca Inc (AVOA) 2760 12/22/2004 4500 75.7


St Joes (JOE) 63.85 12/29/2004 70.31 11.5


JG Boswell (BWEL) 600 1/8/2005 625 6.3


PICO Holdings (PICO) 20.95 1/25/2005 33.9 61.8


Hanover Foods (HNFSA) 90.5 2/22/2005 113.05 24.9


Tootsie Roll (TR) 30.99 1/28/2005 29.31 -1.4


Tejon Ranch (TRC) 46.81 2/15/2005 40.01 -14.5


Discovery Partners (DPII) 3.36 3/17/2005 2.65 -21.1


Nu Horizons Elec (NUHC) 7.03 3/30/2005 10.22 45.4


Inforte (INFT) 3.33 4/23/2005 3.87 16.2


Zapata (ZAP) 8.42 5/11/2005 6 -28.7


Silverleaf Resorts (SVL) 1.3 6/3/2005 4.08 213.8


3COM (COMS) 3.33 7/18/2005 3.79 13.8


Six Flags (PKS) 7.2 8/28/2005 7.56 -5


Maui Land & Pineapple (MLP) 33.16 9/7/2005 34.29 3.41


Plum Creek Timber (PCL) 38.83 9/17/2005 37.05 -3.6


Bob Evans (BOBE) 22.75 10/9/2005 23.84 4.8


Trans World Entertainment (TWMC) 6.35 11/2/2005 5.98 -5.8


Jones Soda (JSDA) 4.88 11/12/2005 5.22 7.0


Blair Corp (BL)41.2 11/19/2005 39.75 -3.5




Average Holding
Period Return 24.6

Taking Our Lumps
We blew it with Zapata Corp (which the author owns). Despite being asset rich and slowly being converted into cash with the sale of Safety Components, and possibly Omega Protein, shares are down nearly 29 percent since our initial report. Still, we hold the shares.

Taking Praise
Silverleaf was up sharply, and we still don't know exactly why. Sure, the company reported solid 3rd quarter results, and is reducing debt, but shares have more than tripled since our report. The author does not own this one....sadly.

Into The Future
2005 was a great year for this site. We look forward to providing compelling research and investment ideas in 2006. Heck. We might even consider launching a micro cap fund....someday

**The author has positions in the following stocks mentioned in this report: TR, TRC, JOE, BWEL, AVOA, PICO, ZAP, MLP, PCL. This is neither a recommendation to buy or sell this security. All information provided believed to be reliable and presented for information purposes only.