Top Four Net/Net Plays
Ingram Micro (IM): 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): 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.
Know What You Own: Other computer wholesale companies include ScanSource (SCSC), GTSI (GTSI) and INX (INXI).For more on the value of knowing what you own, visit TheStreet.com'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.
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