This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Deep Value Opportunities Few as 2014 Approaches

My favorite deep value screening technique, which involves the hunt for net/nets, or companies trading below their net current asset value had some interesting results during 2013. At the end of 2012, there were just seven stocks that qualified as net/nets; an all-time low in my umpteen years of researching and writing on the subject. That group, has had a decent but certainly not great run, considering the overall performance of the markets this year, and are up an average of about 40% year to date.

The best performers were Westell Technologies (WSTL) and Axcelis Technogies (ACLS), which were up 118% and 75% respectively. The worst performers were Imation (IMN), -2%, and Richardson Electronics (RELL - Get Report),+1%. FormFactor (FORM), +35%, Trans World Entertainment (TWMC), +23%, and RadioShack (RSH), +27% round out the list.

If you thought that the net/net cupboards were bare last year, it's even worse as we end 2013. At this writing, and barring any major upheaval in the markets over the last week of trading for the year, we will enter 2014 with just two net/nets with market caps greater than $100 million.

Both of them are repeats from last year, Richardson Electronics, and Trans World Entertainment. Richardson currently trades for 0.95 times net current asset value, and has a solid balance sheet. The company ended last quarter with $132 million, or just over $9 a share in cash and short-term investments, and no debt. The company is currently profitable, marginally so, but also yields 2.2%. The company is followed by just one analyst, and gets very little attention.

RELL Chart
RELL data by YCharts

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GENC $9.59 0.00%
RELL $8.01 0.00%
AAPL $124.53 0.00%
FB $85.80 0.00%
GOOG $521.52 0.00%

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs