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Strategies & Market Trends
Low Price/Cash Ratio Value Stocks

An SI Board Since September 1998

Posts	SubjectMarks	Bans
1870	167	0

Emcee: Q.	Type: Unmoderated

Introduction Compact

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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Reply	Message Preview	From	Recs	Posted
1870	SPRT , $1 per share cash distribution. Good move on their part. If they someh	stock leader	-	12/11/2019
1869	VICL what a pos. i sold the last when it got the $1 offer in late august.. of c	stock leader	-	11/9/2019
1868	Support.com, Inc. ( SPRT) today announced that its Board of Directors has initia	stock leader	-	11/8/2019
1867	SEOUL, South Korea--(BUSINESS WIRE)-- - The release is for the EU, Turkey, and	Elroy	-	9/27/2019
1866	I was planning to sell all mine at $100, but it never made it there. I still ha	Elroy	-	8/20/2019
1865	IDSA liquidation play now, for anyone interested . 1.05 last trade with potenti	stock leader	-	8/20/2019
1864	SPRT is now back in the buy zone. got 5k shares at 1.65 this week. Cash dro	stock leader	-	8/20/2019
1863	i dont have much GRVY left. certainly was a great play last 2 years!	stock leader	-	8/20/2019
1862	When the deal of asset sales is finally consummated EMMS is now currently tradin	FIFO_kid2	-	8/8/2019
1861	Ragnarok is the top selling Gungho game in Japan last month...... sensortower.c	Elroy	-	7/3/2019
1860	My plan to sell GRVY at a $100 isn't working out too well. Wonder what make	Elroy	-	6/25/2019
1859	OVAS/MLND worked out ok, it's at 16 which is as high as its been since last	stock leader	-	6/4/2019
1858	VICL screws shareholders. vical.com Stock down from $1.15 into the $.80's.	EACarl	-	6/4/2019
1857	protection is "minority dissenter rights" as detailed below.. Under v	stock leader	1	5/28/2019
1856	The gravy train keeps rolling	stock leader	-	5/28/2019
1855	Seoul, May 27, 2019 (GLOBE NEWSWIRE) -- GRAVITY Co., Ltd. ( GRVY) (“Gravity” or	Elroy	-	5/27/2019
1854	I was wondering about GRVY.....since the parent company owns (I think) 59% of th	Elroy	-	5/22/2019
1853	I still have half of my shares. I was thinking to wait for $100. The parent co	Elroy	-	5/22/2019
1852	sold some GRVY today at 90. only 50 shs left hard to believe grvy is up 1800%	stock leader	-	5/22/2019
1851	Well, GRVY is the gift that keeps on giving. I don't think many US investor	Elroy	1	5/14/2019
1850	Here it is, all time high record quarterly revenues.... "GRAVITY Co., Ltd.	stock leader	-	5/13/2019
1849	Any idea where is GRVY's Q1 earnings release? I think they're supposed	Elroy	-	5/10/2019
1848	VICL continues slowly upward. bvf fund bought even more shares. with the prist	stock leader	-	4/9/2019
1847	i'm up on OVAS/MLND .. took a few months.	stock leader	-	3/20/2019
1846	like I said EAcarl, I wasn't too much worried on OVAS/MLND, as I held share	stock leader	-	3/15/2019

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