Sunday, October 25, 2009

NYSE Stocks Below a Buck

The stock market has had a huge run since March. You would have thought the rising tide would have made all ships rise. But there are still a half a dozen stocks that trade on the New York Stock Exchange for less than a dollar a share. Some of these companies may be totally worthless, but a couple may be worth speculating on. I will let you decide. All of these low cap stocks trade for less than a dollar.

Anthracite Capital (AHR) has a very high forward PE of 86. But since earnings don't mean much these days, especially for these types of stocks, let's look at the cash and debt position. This New York based commercial REIT has $816 million in cash, giving the stock $9.97 in cash per share, and a $4.59 book value. However the company has $1.86 billion in debt.

Alesco Financial (AFN) is another REIT which generated huge earnings of $3 per share last quarter. However, this boost may be a one time event. The company has $89 million in cash with $3.41 billion in debt. The stock has $1.48 in cash per share, with a $3.43 book value.

Fairpoint Communications (FRP) provides communication services to rural areas and small towns. They have $81 million in cash with $2.56 billion in debt. There is 90 cents in cash per share.

Meridian Resources (TMR) is an oil and gas company with $ 3.7 million in cash and $101 million in debt. The book value is 60 cents per share.

Champion Enterprises (CHB) a producer of factory built housing, has $26 million in cash and $324 million in debt. Book value is $0.82 per share, and $0.34 cash per share.

LLE Royal Trust (LRT) owns net overriding oil and gas royalty interests. They stopped making distributions a few months ago.

If you like low priced stocks with good cash positions, you should check out the free downloadable Excel databases of stocks selling near cash per share, low priced debt free stocks, and stocks selling below book value at

Author does not own any of the above.


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