Strategies & Market Trends
Low Price/Cash Ratio Value Stocks
An SI Board Since September 1998
Posts SubjectMarks Bans
1799 162 0
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
Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):
ReplyMessage PreviewFromRecsPosted
17991st time position in VICL today..1.07, 5k sh.. around 60% net cash.. . just astock leader-June 13
1798 OVAS should rise quick upon their buyout/merger news . should only be a monthstock leader-June 13
1797 Stock leader can have a somewhat abrasive manner but has done great overall wiMCsweet-June 9
1796start into OVAS with 20k shares.... plow instock leader-May 20
1795Lets see, how much is CATO up? And I did not get any free shares? I bought TAIsmaycs4-May 15
1794buy some OVAS . should be meaningful news in 2-3 mostock leader-May 14
1793The laughable "free shares" again. I would explain again but I would smaycs4-May 13
1792ur not familiar with these situations, that's ok... you buy some to start...stock leader-May 9
1791I had a glance at OVAS. Is this an idea similar to ITEK/ That one worked well Elroy-May 6
1790i'm back in OVAS now, investment bank hired and it's below cash value. stock leader-May 6
1789GRVY's revenues jumped massively in Q4 2017 and Q1 2018, but so did their coElroy-May 4
1788got 10k shares OVAS .95 today... inv banker hired, well below cash, would enjstock leader-May 4
1787Hello Elroy, i only have 50 free shs left of GRVY... seems it topped out.. i fistock leader-May 4
1785look back a few weeks , i had mentioned GIGM on here in 2 range and it had poppestock leader-April 17
1784GRVY continues to be a great swing trade.. almost every trade i've had a gaistock leader-April 13
1783What's with GIGM? Major insider buying around $3. Operates about cash flow bEACarl-April 2
1782GRVY held their annual meeting in Korea, and filed 2017 results. Somewhere burieElroy-March 30
1781It looks like CATO is getting a boost today from an article written on Seeking AFIFO_kid2-March 6
1780$100 hit today Gravity... hopefully Korea game launch is bigstock leader-March 5
1779closed above 93... hoping it flies above 100...stock leader-March 3
1778I hadn't even paid attention to the dividend being a week late but I think tsmaycs4-March 3
1777I can call my cat a dog but that does not make it so. Your free shares have a csmaycs4-March 3
1776The future developments they listed in the preliminary Q4 press release sounded Elroy-March 1
1775free shares are free shares, monski. had another great year last year.. 2018 sstock leader-March 1
Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):
Copyright © 1995-2018 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.