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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1808Seoul, Korea, Sept. 19, 2018 (GLOBE NEWSWIRE) -- GRAVITY Co., Ltd. ( GRVY) (“GraElroy-yesterday
1807BML takes 9.96% stake in OvaScience, plans vote against mergerBraden Leonard'stock leader-last Friday
1806I've been playing OGRMF over the last 6 months, had gains everytime, currentstock leader-last Friday
1805Stock leader..I am interested in Pot stocks as well but am concerned that there chris714-September 12
1804ITEK, EVFM, VSAR, NEOT all examples of cash-shell bios that popped after merger stock leader-September 11
1803VICL is the next cash shell to do something, been in since 1.07 and added more ostock leader-September 11
1802I have never glanced at OVAS. But I did own a cash rich biotech that did a mergsmaycs4-September 7
1801i'm not concerned. maybe in 10% of these biotech reverse mergers (into cashstock leader-August 14
1800OVAS completely screwed shareholders. With this horrible deal just announced,EACarl1August 9
17991st time position in VICL today..1.07, 5k sh.. around 60% net cash.. . just astock leader-June 13
1798OVAS should rise quick upon their buyout/merger news . should only be a month stock leader-June 13
1797Stock leader can have a somewhat abrasive manner but has done great overall withMCsweet-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
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