Friday, March 07, 2008

Cheap Stocks 21 Net/Net Index Up Week Ended 3/7/08

The CS21 Net Net Index closed a rather volatile week up .87% at 96.36. Since inception, the index is down 3.64%.

The big winner for the week was retailer The Finish Line (FINL), up 58% on the heals of a settlement in the company's failed acquisition bid for Genesco. The stock popped despite announcing that q4 same store sales were down 6%.

Other Winners:
Tandy Brsnds (TBAC): +15.1%
Emerson Radio (MSN): +7.4%

Parlux Fragtances (PARL): -15.1%
FSI International (FSII): -11%
Richardson Electronics (RELL): -8.6%

Benchmarking The Index
The best way to measure The Cheap Stocks 21 Net/Net Index in terms of relative performance is via the Russell Microcap Index. Comparisons against the S&P 500, or any of the other commonly used benchmarks are simply not relevant.

The Russell Microcap Index
By Definition:*

The Russell Microcap Index measures the performance of the microcap segment of the U.S. equity market. It makes up less than 3% of the U.S. equity market. It includes 1000 of the smallest securities in the small-cap Russell 2000® Index based on a combination of their market cap and current index membership and it includes the next 1,000 securities.

Russell Microcap Index is constructed to provide a comprehensive and unbiased barometer for the microcap segment trading on national exchanges, while excluding lesser-regulated OTC bulletin board securities and pink-sheet stocks due to their failure to meet national exchange listing requirements. The Russell Microcap Index is completely reconstituted annually to ensure larger stocks do not distort performance and characteristics of the true microcap opportunity set.

Portfolio Characteristics
Average Market Cap($-WTD)$402 million
Median Market Cap: $193 million
Largest Company by Market Cap: $1.683 billion Smallest Company by Market Cap: $13 million
Source: Russell

Performance vs Cheap Stocks 21 Net/Net Index
Since inception (2/12/08):
CS21Net/Net: -3.64%
Russell Micro: -7%

Week Ended 3/7/08:
CS21Net/Net: +.87%
Russell Micro: -4.5%

*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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