For investors that want to reduce risk, finding debt free stocks trading below cash per share may be the way to go. Companies without debt are a safe bet; it's hard for them to go out of business unless they have an extremely high burn rate.
But if the company is trading for less than the amount of cash per share, it makes the stock a super buy. The cash per share is calculated by taking the total amount of cash and cash-like securities, divided by the number of shares. Here are a few stocks that meet this criteria.
BroadVision, Inc. (BVSN) closed at 5.56 a share on Friday, but has $8.22 per share in cash. This Redwood City, California company makes and sells enterprise portal applications. Plus the company is free of debt.
Ceres (CERE) produces and markets energy crops to produce renewable bioenergy feedstocks. The stock closed at 23 cents a share, with 45 cents a share in cash. The company does have a small amount of debt, approximately $55,000.
Deswell Industries (DSWL) is a Macau based company that makes and markets injection-molded plastic parts and components. The company has 2.38 in cash per share but closed at 1.88, plus it is debt free.
Ambassadors Group (EPAX) organizes and promotes worldwide educational travel programs for students. The stock is at 2.59, with 2.77 in cash per share. The company has no debt.
If you like stock lists like this, check out the numerous stock lists at WallStreetNewsNetwork.com.
Disclosure: Author didn't own any of the above at the time the article was written.