Friday, March 14, 2008

Cheap Stocks 21 Net/Net Index Down Week Ended 3/14/08

The CS21 Net/Net Index closed a very volatile week down 2.67% at 93.78. Since inception, the index is down 6.22%.

The big loser for the week, and perhaps first candidate in the index that may not survive, was music distributor Handleman(HDL), down 73% on poor earnings an extremely negative outlook, and liquidity issues. The company ended the quarter with $32 million in cash, but $90 million in short term debt, and is working with creditors to amend credit agreements. Not atypical in net/net land.

Other Losers:
Tandy Brands (TBAC): -27.7%
Trans World Entertainmet(TWMC): -19.5%

Winners Were Few and Far Between
Audiovoxx (VOXX): +9.6%
Parlux(PARL): +4%

Performance: Cheap Stocks 21 Net/Net Index vs Russell Microcap Index
Since inception (2/12/08):
CS21Net/Net: -6.22%
Russell Micro: -7.37%

*The author does not have positions in any of the companies that comprise The Cheap Stocks 21 Net/Net Index. This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only. The author will not trade any of the securities mentioned (buy, sell, short) for at least two weeks following the date of this post.

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