I first noticed cheap stock Delta Apparel DLA on that huge spike in June. I thought it was a good short on that run which it was. I really didn't think it was going to do much more because after all they are dependent on the consumer. So, what happened next?

I did get pretty interested when the buyers kept coming in but I didn't give the company much credit and didn't really crunch any numbers other than their net tangible assets which the company was selling below. The stock was up 300% from June! I blew investing in that one but at least I know contrarian investing still works and I did put it on the site.

So, from now on I consider every cheap Net-Net(company selling for less than their net current assets) and company around or less than net tangible assets that is retail to be a potential multi-bagger. There aren't many of these that come about. Finish Line was up 1,000% in just months and was a pretty obvious NCAV because they were a pretty darn good company in the past. And of course there is Heely's HLYS , a company so many smart investors deeply despised at below the cash on their balance sheet but Sketchers offered $5.25 for. And Heely's is still defiant of their offer.

A couple weeks ago I put up some new Net-Net's Spartan Motors SPAR and Superior Uniform SGC not your typical NCAV's. My hunch was right and SPAR is up 45% from the the 13th of October without regard to the market. SGC has traded as high as $9.72 but more or less is flat along with USU.


full disclosure: no positions