• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Repeat Double-Net Offenders Return

Rocky Brands, Olympic Steel, and Movado fall back.
By JONATHAN HELLER
Aug 21, 2020 | 12:00 PM EDT
Stocks quotes in this article: RCKY, ZEUS, MOV

There are a couple of "repeat offenders" back in double-net land (companies trading at between 1 and 2 times net current asset value or NCAV). In fact, both were part of my 2019 Double Net Value Portfolio, rose out of those ranks, and are now back.

Footwear maker/wholesaler/retailer Rocky Brands (RCKY) (which qualified for my October-released Triple Net Passive Portfolio) is down 22% year-to-date, and while off it's low, has not completely recovered from pandemic-related woes. Currently trading at 1.58x NCAV, the company did get a 35% boost after reporting better than expected second quarter results on July 29th (33 cents versus 16-cent loss consensus), but quickly gave back some of that gain.

RCKY trades at 10x next year's "consensus" estimates (just one analyst covers the name), and currently yields 2.46%. The company's balance sheet is fairly solid. RCKY ended its latest quarter with $25.8 million or just over $3.50 per share in cash, and no debt. It currently trades at 1.23x tangible book value. RCKY generates the bulk of its revenue (66.4% in 2019) from wholesale, with the balance from retail (24%) and military (9.6%).

The other new (old) kid on the block is Olympic Steel (ZEUS) , which currently trades at 1.78x NCAV. Shares are down 37% year-to-date. Second quarter revenue was down a whopping 42% year/year, the deadly combination of lower selling volume and lower prices, as industrial names and automaker demand for metals suffered at the hands of the pandemic.

The consensus (just two analysts) expects a rebound in 2021 to the tune of 51 cents, which implies a forward price earnings ratio of 22.5. The one analyst weighing in on 2022 is forecasting an even better year (EPS of $1.43) which has a two year forward PE of 8. Of course, as we are all painfully aware, a lot can happen in a short period of time, let alone two years. ZEUS' balance sheet is light on cash ($7.1 million last quarter, but par for the course with this company), and heavier on debt ($198 million), which is to be expected for a metal products company. The company maintains a 2-cent quarterly dividend, and currently yields .7%.

One of the last new/old double net I profiled, watch name Movado (MOV) , is up slightly (+8%) since that column ran, and currently trades at 1.49 X NCAV. Sometimes the value wheels move very slowly.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Jonathan Heller had no position in the securities mentioned.

TAGS: Investing | Markets | Stocks | Trading

More from Investing

Novocure Enters a New 'Phase'

Bruce Kamich
Apr 14, 2021 12:27 PM EDT

Here is where aggressive traders could go long the cancer therapy name.

Nasdaq Breaks Above Resistance

Guy Ortmann
Apr 14, 2021 11:00 AM EDT

Sentiment data turn more cautionary.

Uber Technologies Is Ready to Drive an Upside Move

Bruce Kamich
Apr 14, 2021 10:51 AM EDT

Aggressive traders could go long UBER, or add to existing longs at current levels or on strength.

The Markets Are Steadily Climbing

James "Rev Shark" DePorre
Apr 14, 2021 10:42 AM EDT

I'm hoping that we see some more rotational action rather than a broad market correction.

JP Morgan Had Another Outstanding Quarter, Here Is How I'm Playing It

Stephen Guilfoyle
Apr 14, 2021 10:34 AM EDT

Should you take profits or buy here? This is my thinking on the stellar banking name.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:42 PM EDT PAUL PRICE

    Wednesday on Real Money Pro

    Make this stock a 'part' of your portfolio.
  • 04:44 PM EDT PAUL PRICE

    Pretty Incredible + Hard to Believe

  • 11:18 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 5 Pillars of Exceptional Trading
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login