Return of the Net/Nets

Recent dislocations in US equity markets have caused a resurgence in the number of so called "net/nets." A "net/net" is simply a security whose market value is less than its net current asset value (NCAV), where net current asset value is defined as total current assets less total liabilities (i.e. both short-term and long-term). The term was coined by Benjamin Graham, Warren Buffett's mentor and teacher, who developed a very impressive investment record investing in such securities. The basic investment strategy was to purchase a diversified basket (perhaps 50 or more) of stocks trading at 2/3rds their NCAV and holding them until for about 3-5 years, or until they reached NCAV. The strategy generated annualized returns of approximately 20% per annum during the 20 or 30 some odd years in which Graham implemented the strategy. Unforunately, many of these "net/nets" dissapeared over the years, but now they are beginning to resuface. I conducted a recent scan and was able to identify over 700 securites trading well below their NCAV. Here are a few securities that appared on that list:

1. Tech Data Corporation (TICKER: TECD)
2. Arctic Cat (TICKER: ACAT)
3. Movado (TICKER: MOV)
4. Signet Jeweleres (TICKER: SIG)
5. Electro Scientific Industries (TICKER: EIO)
6. Natuzzi SpA (TICKER: NTZ)

I will begin to manually go through the list of 700 securities to weed out "defective" companies, and will report on any interesting securities that I find.