Last Friday, I unveiled the 2021 vintage of my Triple Net Passive Portfolio. Here on Wednesday I'll be unveiling the first four of the eight names out of that group that I've selected for the Active portfolio. Over the next year I will track results of Active versus Passive, and of both portfolios relative to benchmarks that include the Russell 2000 Index, Russell Microcap Index and the Value Index for each.
American Outdoor Brands (AOUT) provides outdoor products for hunting, fishing, camping and shooting. The company was spun out of Smith and Wesson Brands (SWBI) in August 2020. American Outdoor Brands currently trades at 2.69x net current asset value (NCAV),and 10x next year's consensus earnings estimates. It ended the latest quarter with $56.3 million, or just under $4 per share, in cash and no debt.
Fitness equipment company Nautilus Inc. (NLS) is a somewhat forgotten name, especially as companies such as Peloton Interactive (PTON) have taken off. Still a fairly well-known brand name, Nautilus currently trades at 2.25x NCAV and ended its latest quarter with $81.5 million, or $2.65 per share, in cash and short-term investments and $13 million in debt. Shares currently trade at 9x next year's consensus estimates. Nautilus has had a very rough year, with shares down 45% year to date. The company warned in August of declining operating margins for the rest of the year.
National Presto Industries (NPK) , which makes small household appliances and defense products, has the distinction of having been mentioned in a later edition of Benjamin Graham's "Intelligent Investor." National Presto currently trades at 2.19x NCAV and ended its latest quarter with $115.6 million, or $16.42 per share, in cash and short-term investments and no debt. Forget about a forward price-to-earnings ratio, as there are no analysts that cover the name. On a trailing 12-month basis, however, it trades at 13.25x earnings. Last year, National Presto paid total dividends of $6.25 ($1 regular, $5.25 special), up from $6 the prior year. That equates to a 7.2% yield.
Last but not least, and perhaps a bit of a surprise, is busted growth story CarLotz Inc. (LOTZ) , essentially a used-car consignment company that currently trades at 2.12x NCAV. The growth crowd has all but given up on the name, which is down 66% year to date. The shortage of used cars has not helped matters. LOTZ ended its latest quarter with $259 million, or $2.28 per share, in cash and $37 million in debt. This one is a bit out of character for this value investor, but it might spice up the group a bit.
On a housekeeping note, I've removed Cardinal Ethanol (CRDE) from the Passive Portfolio; while the company does meet the market cap and NCAV multiple criteria, it has just over 7,000 shares outstanding and trades "by appointment." The Passive Portfolio now contains 50 names.
