Two months since inception, 2019's Double Net Value Portfolio, continues to perform fairly well. Up 15% since inception, it's doing slightly better at this point than both the Russell 2000 (+11.8%) and Russell Microcap (+ 10.7%) Indices. Perhaps most notably, it is also outdistancing the value component of each index, which are up 10.2% and 10.9%, respectively.
The rising market tide has indeed lifted most boats, and all but three of the tracking portfolio's 22 names are in positive territory since its December 18 inception. The worst performer, Tutor Perini Corp (TPC) , is down about 6.5%. TPC currently trades at about 1.43x net current asset value, and 7x next year's consensus estimates. The company badly missed on third-quarter earnings back in early November ($0.42 vs. $0.74 consensus), and is expected to report fourth-quarter results on February 26.
Titan Machinery (TITN) is the best performer, up 38% since portfolio inception, and more than 50% year-to-date. This performance comes with no news, and may be the result of post-tax loss selling buying, as share slid 38% in 2018.
Second-best performer PC Connection (CNXN) (+30%) is enjoying the aftermath of last week's better-than-expected fourth quarter earnings report. CNXN reported earnings per share of $0.80, easily besting the $0.63 consensus estimate. That news sent shares up nearly 17% last Friday.
Benchmark Electronics (BHE) (+27%) has also come on strong, and last week's better-than-expected fourth quarter earnings reports ($0.41 EPS versus $0.35 consensus) did not hurt. The perennially cash-rich company ended the quarter with $458 million, or about $10.60 per share in cash and $154 million in debt.
Notably, cash is down more than $280 million since the same period last year, but much of that ($212 million) was used for share buybacks, including $90 million in the fourth quarter. The company has reduced shares outstanding by 17% over the past year, and initiated a $0.15 quarterly dividend in early 2018.
Here's how the rest of the portfolio has performed thus far:
Adam's Resources & Energy (AE) (+5.5%)
Argan (AGX) (+22%)
Avnet (AVT) (+17.3%)
AVX Corp (AVX) (+15.7%)
AXT Inc (AXTI) (-.2%)
Bridgepoint Education (BPI) (+21.8%)
Cato Corp (CATO) (+6.6%)
Flexsteel Industries Inc (FLXS) (+4.5%)
Gencor Industries (GENC) (+25%)
Hibbett Sports (HIBB) (+21.2%)
Hurco (HURC) (+10%)
Olympic Steel (ZEUS) (+20.3%)
Powell Industries Inc (POWL) (+23.2%)
Rocky Brands (RCKY) (+7.1%)
Vera Bradley (VRA) (+7.5%)
Astec Industries (ASTE) (+19.2%)
Dril-Quip (DRQ) (+19.1%)
Universal Corp (UVV) (-3.6%)
