There's just not been a great deal to mention these days in the land of the net/nets. That typically happens as a rising tide lifts all boats, even those with a few holes. At recent count, there are just a handful of net/nets with market caps in excess of $100 million.
There are more names in the $10-$100 million range, and among these are a few retailers. As you may recall our February 2010 recap of net/net retailers, there were a dozen retail net/nets in the dog days of early 2009, and the returns the following year were quite good.
While we are not suggeating that the current crop of retail net/nets, which are very few in number, will have the same outcome, we are nonetheless intrigued.
AC Moore
Ticker: ACMR
Price: $1.78
Market Cap: $44.8
NCAV: $62.4
Mkt Cap/NCAV: .72
Cash: $31.4
PE: NA
This 135 store craft retailer has struggled throughout the recession and has not had a profitable year since fiscal 2007. Company has $31.4 million in cash and $19 million in debt. Currently trades at .3 times book value per share.
Duckwall Alco
Ticker: DUCK
Price: $12.99
Market Cap: $49.9
NCAV: $64.7
Mkt Cap/NCAV: .77
Cash: $3.7
PE: NA
Regional retailer has 258 stores in 23 states; tends to be located in towns too small to support a Wal Mart. Currently trades at .48 times book value per share. Two of past five quarters have been profitable. Company is a perennial net/net with no analyst coverage. Has generated more than $3.00 in free cash flow in trailing 12 months. Ended last quarter with $41 million in debt. Currently trades at just over 5 times EV/EBITDA.
*The author has a position in AC Moore. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
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