Saturday, July 09, 2011

Top Stocks Selling Below Book Value

The book value of a stock, in simple terms, is what you get when you sell off all the corporations assets, pay off all the debts, and divide up what is left among the shareholders. Therefore, if you are buying a stock at a price below book value, you are getting a pretty good value. There are many stocks currently selling at significant discounts.

One example is Genco Shipping & Trading Ltd. (GNK), which is trading at a huge discount, 22% of its book value. This operator of drybulk carrier vessels trades at about 2.2 times earnings and 58% of sales. Revenues for the latest quarter were up 7.1%, however, earnings dropped 60%.

Dynegy Inc. (DYN) has a price to book ratio of 32%. This wholesales of electric energy has a price sales ratio of 0.39. The company recently experienced a 41% drop in revenues and generated negative earnings. The stock trades at less than $7 per share and has $3.31 in cash.

Boyd Gaming Corp. (BYD) runs 15 casino entertainment facilities in Nevada, Mississippi, Illinois, Louisiana, Indiana, and New Jersey. The stock trades at half of book value, trades at 49 times forward earnings, and has a price sales ratio of 035. Revenues for the latest quarter ere up 36.1%.

If you are looking for below book stocks that pay dividends, has a free list that can be downloaded.

Disclosure: Author did not own any of the above at the time the article was written.


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