3 New Faces Pop Up in Deep-Value Land

The good news, at least for this value investor, is that the market has been kind enough to grace us with a couple of new double nets -- that is, companies trading at between 1 and 2 times net current asset value, or NCAV. Unfortunately, companies may be trading at that relatively low multiple of NCAV for good reason, and a recent price drop versus an improving balance sheet may be one of them.

Super Micro Computer Inc. (SMCI) is new to double-net land, not a repeat offender as I often see. It's also new to me. The end-to-end computing solutions name has taken a big hit the past month, dropping about 20%. Much of that damage occurred in the past week after the company announced that its 10-K filing with the Securities and Exchange Commission will be delayed due to an audit. That type of uncertainty is never good for a stock. Super Micro Computer currently trades at 1.82 times NCAV. The balance sheet is decent, with $113 million, or $2.31 per share, in cash and $60 million in debt.  The forward price-to-earnings (P/E) ratio is just under 11. But we don't know what we don't know in terms of the 10-K delay....224 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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