Saturday, May 23, 2015

Stocks Selling Below Cash Per Share

One fundamental way of searching for favorable stocks is to look for debt free stocks that are selling below book value, or even better yet, selling below cash per share. The cash per share is the total amount of cash the company has in the banks divided by the number of shares.

So if the company were to go out of business immediately, the shareholders would at least get the amount of cash per share plus whatever they could get from the sale of all their other assets.

Liquid Holdings Group (LIQD) is selling for 20 cents per share but has 50 cents in share in cash. In addition, it has no debt. Revenues for the latest quarter doubled, however, earnings were negative. The company is a provider of cloud-based trading and portfolio management solutions.

Lpath (LPTN) is a biotechnology company that is also selling way below cash per share. The share price is less than half of what the cash per share is. It is also debt free. Earnings and revenues were down for the latest quarter.

Delicate Systems (DCTH) sells for almost half of the cash per share. Quarterly revenues were up 43% for this pharmaceutical and medical device company.

When a company stock is trading below cash, it is almost impossible for the company to go out of business, unless it has an extremely high burn rate. Be careful; some of these companies sell for an extreme discount for a reason. If you like stock lists like this, go to to see many of the free stock lists.

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


No comments: