Monday, March 16, 2009

Low Price to Cash Ratio with No Debt Stocks

What stock could be better than a company that is debt free and is trading at a price that is below the amount of cash they have per share. In other words, if the company went out of business, it wouldn't have any debts to pay off, and even if they couldn't sell off any of their assets, just the cash in the banks alone would be more than enough to give the investors a profit. The company would have to lose money at an incredible burn rate in order for the investor to lose money. So do such stocks exist? Yes, has come up with its latest downloadable and sortable list of debt free stocks selling close to cash per share. Here are a few examples:

Sycamore Networks (SCMR) is a debt free company recently traded at 2.56, an 8% discount to its cash per share of 2.79.

optionsXpress Hold (OXPS) is trading right about at its cash per share. The stock has a forward P/E ratio of 7.62 and has no debt.

FormFactor (FORM) was recently trading at 14.96, close to its cash per share of 10.66 per share. The company has no debt.

For a list of 17 stocks with no or low debt that are trading around cash per share, go to The list is in the form of an Excel spreadsheet, which can be added to, sorted, and changed.

Author does not own any of the above.


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