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Bottom Feeding for Deep Value Success Is Rare but Possible

Richardson, which has done little in terms of stock performance for the year, currently trades for 0.97 times NCAV looks interesting due to the strength of its balance sheet. While just marginally profitable at this point, the company ended its latest quarter with $141 million, or $9.65 per share in cash and short term investments. There's an additional $5.5 million, or 37 cents per share in long term investments. In total, each share of Richardson, currently trading at $11.30, represents $10.02 in cash and investments. Richardson also pays a 6 cents quarterly dividend, which equates to a 2.1% yield. RELL ChartRELL data by YCharts

Net/nets are exceedingly rare these days. But they won't be once we see the markets pull back.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

At the time of publication, Heller was long RSH.

Jonathan Heller, CFA, is president of KEJ Financial Advisors, his fee-only financial planning company. 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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