Strategies & Market Trends
Low Price/Cash Ratio Value Stocks
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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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1772Now its .955 so even excluding commissions, there is only 4.7% of upside versus smaycs4-last Tuesday
1771Not really a cash play, but along those lines.......... TCPIF is a company wherElroy-February 5
1770Here's one that has become a cash play - SIGM. They announced plans to sellElroy-February 2
1769 <i>i only have Grvy free shares left. Great quarter, but very strange hoElroy-February 2
1768i only have Grvy free shares left. Great quarter, but very strange how low the stock leader-February 2
1767Gravity Reports Preliminary 4Q 2017 Results and Business Updates 2
1766Holy crap! GRVY released Q4 preliminary numbers, and appears to have hit the baElroy-February 2
1765Initial position in OVAS today at 1.11.. it's a bombed out biotech below cstock leader-January 22
1764<i>haven't followed the crypto currencies too much.. But it definitelyElroy-January 19
1763Yeah, I have no idea why GRVY dipped, but then again I have no idea why it ran fElroy-January 19
1762GRVY never touched the 100's, closing today just under 80. haven't fostock leader-January 19
1761GRVY a little dipper into high 70s... i suspect revs in low 20 mill and small prstock leader-January 19
1760I'm in various crypto currencies these days. One of them (wagerr) uses a prElroy-January 14
1759Do we expect any GRVY financial news before end of March? I seem to recall thatElroy-January 2
1758SPRT consistently trades below its cash value... last Quarter showedstock leader-January 2
1757$100 Grvy should be right around the corner... , still holding the free shares. stock leader-January 2
1756Congrats guys and certainly wise to let free cost shares ride which is definitelFIFO_kid2-12/30/2017
1755I have no idea what to make of GRVY. I've still got half my shares purchaseElroy-12/22/2017
1754GRVY free shares are good, $87 hit today.. all-time high , i think.. I'm hopstock leader-12/22/2017
1753I sold the second 1/4th of my GRVY yesterday. I don't think we get any newsElroy-12/11/2017
1752DNAI , now SRRA has turned into a great winner this year...stock leader-12/6/2017
1751I've heard that S. Korea very racist to all others.. all the more hilarious stock leader-11/27/2017
1750Hello Rangle, I too hold free shares in Grvy.. Hope Asia treating you well, nestock leader-11/27/2017
1749a good predictable ride in grvy... who knows what's nextstock leader-11/27/2017
1748Filipinos are very pro American, Koreans less so. With Koreans language is usuaElroy-11/23/2017
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