Tuesday, September 22, 2009

Is It Still Possible to Find Stocks Trading Near Cash? Yes!

During the last few months, investors have been looking for "can't go wrong" stocks, which are stocks trading close to or even less than the cash per share of the stocks. And if the stocks were debt free, it would be hard for the companies to go out of business unless they had an extremely high burn rate.

Those types of stocks were easy to find when the market was lower, but you can still find some of those bargains out there.

As an example, Wellcare Health (WCG), which sells for around $27 per share, has $24 per share in cash. This debt-free managed care services for government-sponsored health care programs has a market cap of over a billion dollars and has a forward PE of 11.7.

RealNetworks (RNWK) is a $450 million market cap company which trades for around 3.99 per share and has cash per share of 2.31. However, recent earnings have been negative for this digital services media company. At least they are debt free.

WallStreetNewsNetwork.com has come up with a downloadable Excel database of over ten stocks that trade near cash and are debt free, all of which have market caps over $250 million.

Author does not own any of the above.

By Stockerblog.com


EasyLearnStockMarket.com said...

Looking at the cash value is a great fundamental value principle. Thanks for bringing up the basics in a sea of over analyzed oppinions.

I enjoy the Blog!


Stockerblog said...

I'm glad you enjoy it. I will try to come up with many more similar articles.