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Strategies & Market Trends
Low Price/Cash Ratio Value Stocks
An SI Board Since September 1998
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Emcee:  Q. Type:  Unmoderated
This thread is devoted to stocks of debt-free companies that are
valued so cheaply that the market cap is comparable to the cash on
the balance sheet.

Here cash is defined as cash plus cash equivalents, including
marketable securities.

While there's no limit to how low a price/earnings, price/sales, or
even price/book ratio can fall, the cash represents a firm floor for
a stock price. It's difficult for a stock to trade way below cash,
because it would be too easy a takeover target. Moreover, the co.
is likely highly motivated to buy back its own shares.

Today, in the midst of a bear market when the Russell 2000 has fallen
23% from its peak, there are a number of small stocks trading near,
and even below, their cash levels. These are extremely out-of-favor
stocks. Typically the stock has been driven down because the business
is a mfg. co. in a cyclical downturn or suffering other fundamental
problems, yet the balance sheet is so strong that the co. is in no
risk whatever of failing. Moreover, you can buy the co. for almost
nothing, since the cash is comparable to the market cap.

Here's a list of low p/cash debt-free stocks today, based on the latest 10Q.
I've limited the list to stocks with a price > $3 and a market cap > $30 M.

symbol price market cap cash price/cash cash/rev business

CPCI 6 3/4 $33.3 M $35.6 M 0.93 3.3 Q RAID disk drives
CNXS 3 13/16 $70.0 M $66.4 M 1.05 5.5 Q anti-snore nose strips
ANET 5 1/2 $50.4 M $46.0 M 1.10 3.9 Q frame-relay WAN equip
KNTK 6 3/8 $45.3 M $40.7 M 1.11 3.4 Q laser printers
MTSN 3 1/8 $45.9 M $40.3 M 1.14 2.6 Q semi mfg equip
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1753I sold the second 1/4th of my GRVY yesterday. I don't think we get any newsElroy-yesterday
1752DNAI , now SRRA has turned into a great winner this year...stock leader-last Wednesday
1751I've heard that S. Korea very racist to all others.. all the more hilarious stock leader-November 27
1750Hello Rangle, I too hold free shares in Grvy.. Hope Asia treating you well, nestock leader-November 27
1749a good predictable ride in grvy... who knows what's nextstock leader-November 27
1748Filipinos are very pro American, Koreans less so. With Koreans language is usuaElroy-November 23
1747I bght GRVY after the sub news my cost was 17ish I didn't know about till Rangle-November 19
1746Elroy and stock Nice on GRVY ..im on it but I didn't hold it over 40 I haRangle-November 18
1745Cheers my friend.. i've heard phillipeans/south koreans not fond of whites?stock leader-November 16
1744I'm on vacation until December 1st, hopefully above $100 by the time I returElroy-November 16
1743Gr-a-vy train keeps steamrolling .. above 80 now. i continue to hold free shstock leader-November 16
1742Damn. GRVY another day, another $8.00 gain. I don't know what these buyersElroy-November 8
1741GRVY probably won't report another quarter (Q4) until the end of March, righElroy-November 7
1740Grvy 68+ close , all time high i think...stock leader-November 7
1739Well, the GRVY dip didn't last long. I think this stock may just run up untElroy-November 2
1738Yes, the Q3 results don't explain the price jump from $28 level to $55 levelElroy-October 30
1737Grvy results out today... surprising that revs and profits Down from last quartestock leader-October 30
1736i still have free shares riding in the Gravy Train... $58 right now... therstock leader-October 19
1735I think this is a real time link to the Taiwan iTunes store. There's GRVY rElroy-October 19
1734m.mt.co.krElroy-October 18
1733I saw a post somewhere (maybe Yahoo) that indicated GRVY's apps are #1 and #Elroy-October 18
1732i'm up another grand on my recent smaller trade... Maybe some short squeezestock leader-October 16
1731GRVY up $4 for no apparent reason. I wonder if they are going to blow out numbeElroy-October 16
1730I sold 1/4th of my GRVY yesterday. No reason, just felt like itElroy-October 13
1729I continue to hold the remaining 1500 free shares in ITEK... who knows there.. Hstock leader-October 12
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