Whatever Became of The Cheap Stocks 21 Net/Net Index?

Although we wrapped up our experimental 2 year index of net/nets last February, we still have the ability to track it. While it ended the 2 year run up 5.1%, nearly 1400 bps points ahead of the Russell Microcap Index, and more than 2500 bps ahead of the S&P 500, we'd actually hoped for better performance.

Although we've generally stopped tracking CS 21 since the intended February wind-down, we thought it would be interesting to check performance since then. Since February, the Index is up 14.3%, vs. 5.13% for the S&P 500, and 12.25% for the Russell Microcap Index. Since orignal inception, CS21 is up 20.45% while the S&P 500 is down 16% and the Russell Microcap is down about 9.8%

The primary determinant of the continued decent run by the index has been the performance of former net/net The Finish Line (FINL) which is up more than 500% since the original index launch.

Please search the site for past posts on CS21. Below are the orignal components, and their initial weights.

Adaptec Inc(ADPT)
Weight: 18.72%
Computer Systems


Audiovox Corp(VOXX)
Weight: 12.20%
Electronics


Trans World Entertainment(TWMC)
Weight:7.58%
Retail-Music and Video


Finish Line Inc(FINL)
Weight:6.30%
Retail-Apparel


Nu Horizons Electronics(NUHC)
Weight:5.76%
Electronics Wholesale


Richardson Electronics(RELL)
Weight:5.09%
Electronics Wholesale


Pomeroy IT Solutions(PMRY)
Weight:4.61%
IT
Acquired


Ditech Networks(DITC)
Weight:4.31%


Parlux Fragrances(PARL)
Weight:3.92%
Personal Products


InFocus Corp(INFS)
Weight:3.81%
Computer Peripherals
Acquired


Renovis Inc(RNVS)
Weight:3.80%
Biotech
Acquired

Leadis Technology Inc(LDIS)
Weight:3.47%
Semiconductor-Integrated Circuits


Replidyne Inc(RDYN)Became Cardiovascular Systems (CSII)
Weight:3.31%
Biotech


Tandy Brands Accessories Inc(TBAC)
Weight:2.94%
Apparel, Footwear, Accessories


FSI International Inc(FSII)
Weight:2.87%


Anadys Pharmaceuticals Inc(ANDS)
Weight:2.49%
Biotech


MediciNova Inc(MNOV)
Weight:2.33%
Biotech


Emerson Radio Corp(MSN)
Weight:1.71%
Electronics

Handleman Co(HDL)
Weight:1.66%
Music- Wholesale


Chromcraft Revington Inc(CRC)
Weight:1.62%
Furniture


Charles & Colvard Ltd(CTHR)
Weight:1.50%
Jewel Wholesale

We still intend on developing a new Net/Net Index, this time equal weighted. Stay Tuned.


*The author has a position in Chromcraft Revington (CRC). This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.