At first, I could not believe my ears when Candace King Weir, of Paradigm Capital Management mentioned Richardson Electronics (RELL), a member of our very own Cheap Stocks 21 Net Net Index, at the 5th Annual New York Value Investing Congress last week.
Weir, a self-professed bottom up stock picker, held out tiny Richardson as one of her favorite ideas citing the following:
*High barriers to entry in their market
*Trading at a discount to tangible book value
*Trading at just 7.5 times expected 2011 eps ($.80)
*Believes shares are worth $9-$11
Although Richardson, which is up 21 percent since the inception of the CS21 Net Net Index in February, 2008, no longer trades below its net current asset value, its very close at just 1.06 times NCAV.
Richardson Electronics
Ticker: RELL
Price: $5.94
Market Cap: $106 million
NCAV:$100 million
Mkt Cap/NCAV: 1.06
Cash: $43.9
Cash/Share:$2.45
Debt: $52.3
*The author does not have a position in Richardson Electronics (RELL). This is neither a recommendation to buy or sell any securities. All information provided believed to be reliable and presented for information purposes only.
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