Top Ten Net/Nets

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
Mkt Cap: $556
P/E: 5

Adaptec(ADPT)*
Price: $2.95
NCAV: $394.7
Mkt Cap: $357
P/E: NA

Audiovoxx(VOXX)*
Price: $10.95
NCAV: $272.2
Mkt Cap: $250
P/E: 25

Force Prtoection(FRPT)
Price: $2.97
NCAV: $194.7
Mkt 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
Mkt Cap: $116
P/E: 4.5

West Marine(WMAR)
Price: $5.48
NCAV: $146.8
Mkt Cap: $120
P/E: NA

Trans World Entertainment(TWMC)*
Price: $3.5
NCAV: $205
Mkt Cap: $109.2
P/E: NA

Activeidentity(ACTI)
Price: $2.18
NCAV: $108.9
Mkt Cap: $99.8
P/E: NA

Hampshire Group(HAMP)
Price: $9.5
NCAV: $88.7
Mkt Cap: $74.7
P/E: 25.3

Flexsteel Industries(FLXS)
Price: $11.47
NCAV: $75.7
Mkt Cap: $75.4
P/E: 7.8

Ditech Networks(DITC)*
Price: $2.92
NCAV: $86.1
Mkt 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.

*The author does not have positions in any of the companies mentioned. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only. The author will not trade any of the securities mentioned (buy, sell, short) for at least two weeks following the date of this post.