Renewable Energy Group ( REGI) barely makes the cut at about 97% of tangible book value. Some of my friends who know this space tell me that biofuels could take a leading role in the alternative energy markets in the years ahead., If so, this company could actually become a market darling at some point. For now it is just cheap enough with an F-score of 5 and a Z score of 3.7.

In his book Graham emphasized that bargain-issue buyers would often find themselves owning businesses they didn't really like that much, based on safe and cheap you own them anyway. With my distrust of alternative energy, this is such a stock for me.

Two of the stocks on the list are ones I already own and have discussed at length in prior columns. I have started buying back into contract electronics manufacturer and furniture concern Kimball International ( KBALB) at the current 70% of tangible book value. Volt Information Sciences remains one of my favorite holdings and I think the stock easily doubles over the next few years. Both trade well below tangible book and have Z and F scores that provide an adequate margin of safety.

I am also not a huge fan of the small semiconductor companies but Alpha and Omega Semiconductors ( AOSL) is in a segment of the industry that should do well. They provide power chips that are used in computers, smart phones, gaming systems and battery packs. Their chips are also used in industrial and lighting applications.

More importantly with the shares trading at just 60% of tangible book value the stock is cheap. Score is a neutral 5 and the Z score of 3.8 indicates a healthy balance sheet. More than half of the market cap is in cash on the balance sheet right and the company is profitable.

Shares of John B. Sanfilipo & Son ( JBSS) have done pretty well since I first suggested them back in February of 2012 but they are still cheap enough to make the grade. They have a strong F score of 8 and a Z-score of 3.8 so the safety factor is strong as well.

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