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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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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
1711i'm mostly out of ITEK today at 1.20 avg... just have some free shares. Doestock leader-September 13
1710Inotek Pharmaceuticals Announces Merger Agreement with Rocket Pharmaceuticals toElroy-September 12
1709I saw that today, it was up almost $2.00 per share on 10,000 shares traded. VerElroy-September 12
1708grvy above $22. You would think the parent company, Gungho/Softbank, would bustock leader-September 12
1707Yes, I have a bit of Gravity left over from around $11 about this time last yearElroy-August 24
1706ITEK .. seeking alpha article... liquidation seems preferable at this point. stock leader-August 23
1705grvy coming back a bit in the 19'sstock leader-August 23
1704Many countries including North America! secfilings.nasdaq.com "GRAVITY BEACarl-August 17
1703I have a relative who runs a small online gaming venue in the Philippines. I trElroy-August 17
1702what countries is grvy going into next with the hit game? I continue to watchstock leader-August 16
1701I wonder how many other countries Grvy has yet to release the hot game?stock leader-August 16
1700RE "last year when the stock ran to $39!" Sorry, my mistake. $39 waEACarl-August 10
1699RE "the really nice gains take stellar news or a fleet of traders.. or bothEACarl-August 10
1698I think the proper calculation is that market cap is 3.5 million X share price. Elroy-August 9
1697traders are simply ignoring the stock, for the most part... the really nice gainstock leader-August 9
1696not sure on that.. I think the north korea tensions put somewhat a damper on tostock leader-August 9
1695wasn't in grvy this time around.. it's funny to see some scam Asian shitstock leader-August 9
1694 <i>I know how it goes, the market is always right and that makes me very Elroy-August 9
1693Given that you are looking at the price per share of the ADS's market cap woEACarl-August 9
1692GRVY drives me nuts. Most undervalued stock I've ever seen. Revenues are gEACarl-August 9
1691GRVY's income statement indicates that they have 7 million shares outstandinElroy-August 9
1690Seoul, Korea, Aug. 09, 2017 (GLOBE NEWSWIRE) -- GRAVITY REPORTS SECOND QUARTER OElroy-August 9
1689ITEK loss report came out, seems positive as loss fell considerably. Price upwastock leader-August 7
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