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Top Four Net/Net Plays

Ingram Micro (IM - Get Report): Currently trading at 7 times trailing 12-month earnings, full-year and fourth-quarter numbers have not yet been released, so that seemingly low valuation will likely change with the release. Still, with full-year 2009 consensus estimates at $1.32, the stock trades at just 10 times forward earnings.

Furthermore, Ingram has more than $800 million in cash, nearly $5 per share, and $457 million in debt. The company currently trades at 0.64 times book value and shares are down about 9% since my November piece on the company.

Tech Data (TECD - Get Report): Another tech company trading in a single digits in terms of P/E (just below 9), Tech Data is expected to earn $2.09 per share for fiscal 2010 (January), so it currently trades just above 9 times forward earnings. With net current assets of $1.41 billion, the company trades at two-thirds of its net current asset value, a number that might get Ben Graham to take a look.

As of Oct. 31, the company had $385 million in cash, or $7.67 per share, and $430 million in total debt. Tech Data is currently trading at just 0.57 times book value and 8.5 times free cash flow. Shares are down 34% since I first profiled this company in September .

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Signet Jewelers to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

Know What You Own: Other computer wholesale companies include ScanSource (SCSC - Get Report), GTSI (GTSI) and INX (INXI).For more on the value of knowing what you own, visit's Investing A-to-Z section.

This was originally published on RealMoney on Feb. 18, 2009. For more information about subscribing to RealMoney, please click here.

Learn More About Investing With the Finance Professor on

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  • At the time of publication, Heller had no positions in the stocks mentioned.

    Jonathan Heller, CFA, is president of KEJ Financial Advisors, a fee-only financial planning he recently launched. Jon spent 17 years at Bloomberg Financial Markets in various roles, from 1989 until 2005. He ran Bloomberg's Equity Fundamental Research Department from 1994 until 1998, when he assumed responsibility for Bloomberg's Equity Data Research Department. In 2001, he joined Bloomberg's Publishing group as senior markets editor and writer for Bloomberg Personal Finance Magazine, and an associate editor and contributor for Bloomberg Markets Magazine. In 2005, he joined SEI Investments as director of investment communications within SEI's Investment Management Unit.

    Jon is also the founder of the Cheap Stocks Web site, a site dedicated to deep-value investing. He has an undergraduate degree from Grove City College and an MBA from Rider University, where he has also served on the adjunct faculty; he is also a CFA charter holder.
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    SCMR $0.47 0.00%
    IM $27.80 0.00%
    SCSC $36.30 0.00%
    SIG $98.63 0.00%
    TECD $64.00 0.00%


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