Low Debt/No Debt Stocks Selling Below Cash per Share

One of my favorite screens for stocks are the ones that are debt free. It's hard to go out of business when a company has no debt. If you can find a debt free company selling below book value (the value of the stock if the company goes out of business today, everything the company owns is sold off, and the company liquidates, with distributions to all shareholders), then it is very hard to go out of business.

And if the company has no debt and is selling below its cash per share, then it is extremely difficult to go out of business. Management would have to be spending money like a drunken sailer for that to happen (or the company could have reported fictitious numbers e.g. Enron).

So I take notice when I find stocks with no debt or very little debt and selling below cash per share. The cash per share is basically all the company's cash on hand and cash equivalents, divided by the number of shares of the company. If the company went out of business immediately, couldn't sell off any of its equipment, real estate, inventory, or other assets, and had cash per share to distribute to shareholders that exceeded the price of the stock currently, then a profit is almost guaranteed.

One example is Payment Data Systems (PYDS), a provider of integrated electronic payment processing services. The stock closed at 2.35 per share on Friday, yet has 5.40 per share in cash, a 3.05 discount to cash, or on a percentage basis, a 56.5% discount. The company trades at six times cash flow, and has a reasonable price to sales ratio of 1.78.

Another example is Emerson Radio (MSN), a marketer of houseware and consumer electronic products. The stock is trading at 1.04 per share on Friday, yet has 1.78 per share in cash, a 41.6% discount to cash per share. The company has a price to earnings ratio of 20.8, and an extremely favorable price to sales ratio of 0.43.

For a list of a dozen stocks that are trading below cash and are debt free or almost debt free, go to WallStreetNewsNetwork.com. Keep in mind that most of these stocks are very low cap, and low priced, so therefore are very speculative.

Stocks Selling Below Cash per Share and Debt Free: Guaranteed Way to Profit

If you want to find stocks that are almost guaranteed not to go out of business, you should look for stocks selling below cash per share. As a matter of fact, if you want an almost guaranteed way of of investing, putting your money into stocks selling below cash is the way to go. One of the advantages of the recent market drop is the fact that many stocks have been beaten down so low that many of these types of companies have become available.

So what does it mean that a stock sells below cash per share? First, assuming the company has no debt,  you take the amount of cash that the company has in the bank and divide it by the outstanding number of shares. That represents the cash per share. If a stock is trading for less than that amount, it is a bargain, because if the company went out of business immediately, everything would be liquidated and disbursed on a per share basis. Even if all the company's equipment and real estate were worth nothing, all that cash would provide the investor with a profit.

Once a stock sells for below cash per share, it starts to attract t6he attention of hedge funds, analysts, and companies looking for a takeover candidate, all of which can drive the price of a stock up. You may be wondering, do such stocks really currently exist? The answer is 'Yes' and here are a few of them.

Avalanche Biotechnologies, Inc. (AAVL) is develops gene therapies for the treatment of ophthalmic diseases based on its Ocular BioFactory platform. The stock closed on Friday at 10.64 per share, yet the stock has 13.09 in cash per share, almost a 19% discount. Or another way to look at it would be if the stock price reached its cash price, it would rise by 23%. Latest quarterly revenues for the company rose by 50.4% year over year. The company is currently debt free. Of course, with biotech companies, or any type of company for that matter, there is a risk that management may burn through a lot of cash quickly.

BroadVision (BVSN) makes and sells enterprise portal applications. It is debt free with cash per share of 7.25, yet is is trading for 6.00 per share, a 17% discount. Quarterly revenues were down 30.8%.

Ambassadors Group (EPAX) is a Spokane, Washington company which markets worldwide educational travel programs for students. The stock is at 2.70 and the cash per share is a healthy 4.14, a discount of 35%. The company has no debt. Revenues were down 10% for the latest quarter, but the company generated a profit for the latest quarter after two quarters of losses.

Gencor Industries (GENC) is another stock below cash. It makes and markets heavy machinery. The stock is at 9.15, whereas cash per share is 10.19,

As you can see, there are several of these diamonds in the rough. But do your research before investing, as most of these have very low market caps and limited trading which reduces liquidity. If you like interested stock lists like this, you should check out many of the free stock lists at WallStreetNewsNetwork.com.

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

By Stockerblog.com

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 WallStreetNewsNetwork.com to see many of the free stock lists.

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

By Stockerblog.com

Stocks Selling Below Cash per Share

Getting Stocks at a Discount

Investors who are looking for turn-around situations in the stock market, yet want to reduce their risk, should look at stocks selling below cash per share. This means (in simple terms) that if you take all the company's cash in the bank, divide it by the number of shares, the result would be higher than what you could buy the shares for. If the company has little or no debt, then if the company went out of business today, you would receive more than what the shares are trading for.

There are several stocks selling below cash per share that have been identified by WallStreetNewsNetwork.com. Obviously, when stocks sell this cheap, there is usually some sort of negative issue associated with it, but if you are a contrarian, you may find a gem in the junk pile.

Electronics

One example is Emerson Radio Corp. (MSN), the New York Stock Exchange traded marketer of house-ware and consumer electronic products, such as DVD players, microwave ovens, compact refrigerators, clock radios and televisions. The stock, which currently trades at 1.77 per share, sells way below its book value of 2.66 per share, and 18% below its cash per share of 2.15. The company only has $83 thousand in debt. The stock trades at only five times earnings. On the downside, latest quarterly revenues and earnings were down by over 40%. A one time large dividend distribution to the shareholders could send this stock higher. The company has been in business since 1948.

Education

Career Education (CECO) operates colleges, schools, and universities that are in career-oriented disciplines. Its operations include Colorado Technical University and American InterContinental University. Degree and certificate programs are numerous and include technology, criminal justice, computer science, engineering, health sciences, culinary arts, hotel and restaurant management, fashion, interior design, film and video production, and construction. The stock sells at an 18% discount to its cash per share of 4.29. The stocks trades at 3.52, way below its book value of 8.90. Total debt for the company is only $103 thousand. Earnings for the latest reported quarter were negative and the company will report second-quarter 2013 financial results on Wednesday, August 7, 2013, after the market close. This Illinois based company was founded in 1994.

For a free list of over ten stocks trading at or below cash per share, go to WallStreetNewsNetwork.com. The list includes current price, cash per share, debt, P/E ratio, and discount to cash per share. Please keep in mind that although the turnaround percentage gains on these stocks can be huge, the risks are high because of the low capitalizations and usually poor earnings. I hope you find your gem.

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

By Stockerblog.com

Top Stocks Selling Below Book Value

Book value, in very simple terms, is what the shareholders would receive for each share if the company sold off all its assets today, paid off all its debts, and distributed all the cash on a pro-rata basis. Therefore if you can buy a stock below its book value, you have reduced one element of risk.

An example is the New York Stock Exchange company Thompson Creek Metals Company (TC), a Denver, Colorado based company which is in the mining and marketing of molybdenum. The stock trades at 25% of book value, 15 times trailing earnings, and 10.6 times forward earnings.

Another stock trading way below book is Petrobras Argentina SA (PZE), the Buenos Aires based company involved in the exploration and production of oil and gas. The stock sells at 43% of book value, and trades at 23.4 times trailing earnings. The forward price to earnings ratio is 4.0. Earnings for the latest quarter spiked by 127% on a 13% rise in revenues.

Photronics Inc. (PLAB) manufactures photomasks used in the manufacture of semiconductors and flat panel displays and trades at 55% of book value. The trailing PE is 9 and the forward PE is 7. Earnings for the latest quarter dropped 2.8%.

If you like interesting stock lists like this, check out the many free stock lists at WallStreetNewsNetwork.com.

By Stockerblog.com

Cheap Stocks Selling Below Cash and Debt Free

It would be pretty difficult for a company to go out of business if it is debt free, compared with companies that are heavily encumbered with loans. If you are able to buy a stock for less than the book value, that is even better. The book value is, in very simple terms, all assets minus all liabilities, dividend by the number of shares. In other words, if the company went out of business today and was able to liquidate everything immediately, what each shareholder would receive.

However, an even better buy would be if you could buy the company's stock for less than the amount of cash it has for each share. It may be hard to believe, but there are over 15 stocks trading at less than the cash per share, according to the latest list of Stocks Selling Below Cash per Share at WallStreetNewsNetwork.com.

One example is Amtech Systems Inc. (ASYS), a Tempe, Arizona based company which manufactures and markets the capital equipment used in the manufacture of wafers, primarily for the semiconductor and solar industries. This debt-free company, which closed at 3.31 on Friday, is selling way below its book value of 10.90, and about a 25% discount to the amount of cash per share of 4.47. Net revenue for the third quarter of fiscal 2012 was $24.3 million, up 13% from $21.6 million for the preceding quarter. The net loss for the third quarter of fiscal 2012 was $3 million or a loss of $0.31 per share compared to a net loss of $5.1 million or $0.54 per share in the preceding quarter.

If you trust the financials from Chinese based companies, you may want to take a look at UTStarcom Holdings Corp. (UTSI), a Beijing, China based business which makes and markets Internet protocol-based telecommunications infrastructure products to telecommunications service providers. Customers are based in China, Japan, India, the United States, Latin America, and Europe. The stock trades at 25.8 times earnings, and based on its closing price on Friday of 1.03, is selling at an approximately 45% discount to the cash per share of 1.86. During July and August, the company repurchased $2.2 million of its shares as part of its ongoing $20 million share repurchase program that was launched in August 2011. The company has no debt.

O2Micro International Ltd. (OIIM) is a debt-free Cayman Islands based company involved in the creation and selling of integrated circuits for power management and e-commerce components and systems. The stock closed at 3.74, which is at a discount to its cash per share of 3.83, and way below the book value of 5.36.

For a free list of all the debt-free stocks selling below cash, go to WallStreetNewsNetwork.com. The list can be downloaded, sorted, and updated.

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

Top High Yield Low Price No Debt Below Book Stocks

It is one thing to find a high yield low price stock, but there are more characteristics that you have to look at. Does the stock only pay a dividend once a year or quarterly? Is it selling way above book value or below book? Does the company have a ton of debt?

To make it easy for investors do do their research, WallStreetNewsNetwork.com has just updated its High Yield Stocks Below $10 per Share list, It has been narrowed down to only show the stocks with yields greater than 4%, selling below book value, and with little or no debt. In addition, all the stocks pay quarterly.

An example is Lawson Products Inc. (LAWS), a Chicago, Illinois based company which distributes maintenance and repair related products and services. The customers include numerous industries, such as automotive repair, commercial vehicle maintenance, government, manufacturing, food processing, distribution, construction, oil and gas, and mining. The stock trades at 6.7 times forward earnings and pays a very generous yield of 5.1%. The company has a small amount of debt relative to its capital and sells at 62% of book value.

Friedman Industries (FRD) is involved in steel processing, pipe manufacturing and processing, and steel and pipe distribution. The stock pay a dividend rate of 5.6% and sports a forward price to earnings ratio of 5.3. This debt free company sells right at book value.

The Dallas, Texas based A. H. Belo Corporation (AHC) is a newspaper publishing company, which owns and operates four metropolitan daily newspapers: The Dallas Morning News, The Providence Journal, The Press-Enterprise, and The Denton Record-Chronicle. The company last reported negative earnings but pays a 5.8% yield. The company is debt free and trades at 77% of book value.

The see the entire list of 30 high yield low priced stocks that have low or no debt and trade at less than book value, go to WallStreetNewsNetwork.com.

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

By Stockerblog.com