Monday, July 04, 2011

Stocks Selling Below Cash per Share

One metric that value investors look at is the amount of cash per share, in other words, dividing all the cash that the company has in the bank divided by all the outstanding shares. Then if you compare that cash per share to the stocks price, and if the cash exceeds the stock price, then you might have found a very favorable investment.

You obviously have to look at other factors and metrics, but finding the stocks below cash could be a good starting point. just updated its list of stocks selling below cash, which also includes data on the forward price to earnings ratio and the total debt.

One example is Investment Technology Group, Inc. (ITG) is a financial markets technology firm which is primarily sold to hedge funds and asset management companies. The company produced POSIT, the industry’s second anonymous electronic trade matching system, in 1987. ITG also markets tools for portfolio management, pre-trade analysis, order management, trade execution, and post-trade evaluation. The company has about $32 in cash per share and trades at 14 per share. The stock trades at 12.1 times forward earnings and total debt amounting to $34.2 million. Earnings per share increased by 13.2% for the latest quarter on a 2.3% increase in revenues.

Xinyuan Real Estate Co., Ltd. (XIN) is a China based residential real estate development business, and provider of property management services. The stock is trading at 2.22, about a 41% discount to cash per share of 3.76. The company has a forward price to earnings ratio of 2 and total debt of $323.5 million. Earnings for the latest quarter were down 2.1% on a 17.1% reduction in revenues.

For a list of stocks trading below cash per share, which you can update and sort, go to

Disclosure: Author didn't own any of the above at the time the article was written.


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