I am excited to see this company so inexpensive. Not only is Tandy Brands at a steep discount to book, it is a NCAV stock. In other words, it is selling for less than its net current assets less all liabilities. The stock last traded for $9.37 and has a net current asset value of $10.50. Only $3.5 million of this is in cash and some inventory will get marked down. However, there is no value being reflected in the stock for the value of goodwill like trademarks, buildings etc. ceteris paribus.

To sweeten things up, they even pay a dividend! They have paid dividends for 18 consecutive quarters. The dividend was increased to $.04 a quarter just this February. They are working on focusing on products with higher margins. I wouldn't be surprised to see the stock suffer some more. If it continues there may be a buyout and definitely a good price to pick up a good company in a hated industry right now.


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full disclosure: no position in Tandy Brands Accessories (TBAC)