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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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1736i still have free shares riding in the Gravy Train... $58 right now... therstock leader-yesterday
1735I think this is a real time link to the Taiwan iTunes store. There's GRVY rElroy-yesterday
1734m.mt.co.krElroy-Wednesday
1733I saw a post somewhere (maybe Yahoo) that indicated GRVY's apps are #1 and #Elroy-Wednesday
1732i'm up another grand on my recent smaller trade... Maybe some short squeezestock leader-Monday
1731GRVY up $4 for no apparent reason. I wonder if they are going to blow out numbeElroy-Monday
1730I sold 1/4th of my GRVY yesterday. No reason, just felt like itElroy-October 12
1729I continue to hold the remaining 1500 free shares in ITEK... who knows there.. Hstock leader-October 12
1728good volume Grvy today 70k or so .. only 1.4 mill float. $36 reached. Looks stock leader-October 12
1727ITEK filed its registration statement about the reverse merger with Rocket PharmElroy-October 12
1726Yeah, the only reason I've ever heard of GRVY is that it was a cash rich plaElroy-October 10
1725Must be a different world out there in Asia, I'm here in the states. currestock leader-October 10
1724I will be at Legoland in Malaysia with the kids on October 30th, so I'll havElroy-October 5
1723re GRVY, the ir dept said to me that earnings will be Oct 30, which is early forstock leader-October 5
1722Hmmm, maybe so. I find it hard to understand why investors would prefer drugs uElroy-October 5
1721RYTM Rhythm Pharma IPO'ed today and popped up near double from offer pricestock leader-October 5
1720ITEK closed at $3.00 or so. The market cap is now $80 million. Is my understanElroy-October 5
1719ITEK going parabolic as I type this, 3.33... out of another 1500 shares... 1500 stock leader-October 5
1718amazed at the continued climb of ITEK... holding the 3k free shares, got into 2.stock leader-October 5
1717Damn, someone has decided that ITEK's new drug pipeline is a good one. $1.9Elroy-October 2
1716shares short 9/15 were 67k... however the float is only 1.2 mill shares... I am stock leader-September 28
1715Yeah, I sold all my ITEK at $1.40, should have hung on. I don't know how itElroy-September 27
1714i only have 3k free shares left on ITEK.. it's 1.72 now... surprised at the stock leader-September 27
1713I sold my ITEK Friday at $1.35. Nice trade, 82.5 cents to $1.35 in less than thElroy-September 16
1712Grvy is rocking again, I'm up $5k from 22-23... holding...stock leader-September 16
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