The Parlux merger with Perfumania, which was completed last week, represents the third major transaction involving a CS26 Net/Net Index member since September's inception. Parlux shareholders had the option of receiving .5333 shares of Perfumania per Parlux share, or $4 in cash and .2 Perfumania shares. We assumed the latter in the calculation of the Index
Previous transactions for CS 26 companies included the acquisition of BigBand Networks, and Trimeris-Synageva Merger. Since inception The Cheap Stocks 26 Net/Net Index is up 25.6% versus 21% for the Russell Microcap Index.