Value Bets

I recently read "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" by Joseph Piotroski (Chicago Graduate School of Business).

The methodology he outlines is fairly simple. Take High Book-to-Market stocks who have no analyst following them and sort through 9 simple accounting ratios. Score them. The ones with high scores likely perform the best. I have not quite yet created a stock screen to use Mr. Piotroski's methodology. However, I have found what I think might just be a winner.

Check out CRV - Coast Distribution System, Inc. The company is an RV and marine parts distributor. It's a tiny company - 31 million market cap. It trades at 8.6 times earnings (P/E = 8.6). Price to Sales is 0.2! What's more, is that the F_SCORE on Piotroski's scoring scale is a 9.0 out of a 9.0. So, the company appears undervalued, and is seemingly turning the corner.

I'm not typically comfortable as a "Value Investor", so I will watch this company and learn from it. If any of you out there know anything about this company, let me know. There are NO analysts following the co.