Net-Net territory. Is there value?

I believe TRS has a net net price of $1.53. At $1.87 its got 22% to fall to hit that price, but even a further 5-10% fall would surely put TRS into play for a good value stock. The only issue is 76% of current assets is inventory. And you wonder if you can trust that the value of its calculated inventory will ever be fully realized.

On the business side of things, revenue has been 800m for 4 years in a row. If management can achieve a net profit margin of 2% for the next three years, thats 48m dollars, & the current market cap is 54m dollars.

You could buy this stock for close to net net value, yet in earnings alone, earn almost your entire investment back in only 3 years. But of course you wouldn't be earning your investment back, as your investment is covered by the fact its close to net-net, the earnings over 3 year is cream on top.

I suppose the only concern is the business. The Reject Shop is not a great business & over time bad businesses turn $1 into 90 cents, then 80 cents, even 50 cents.

Although this is more than a speculative buy in my opinion. I cant look past the fact its revenue has maintained 800m for 4 straight years. Good management can return this stock back to north of $3 - and you might not have to wait years for it to happen.