Stock on WallStreetNewsNetwork List Up 49% on Friday

In case you missed it, earlier this week on Wednesday, July 10, I wrote an article called Stocks Selling Below Cash per Share - Getting Stocks at a Discount which described how risk can be reduced by finding stocks trading below the amount of cash per share, especially if the company has low or no debt.

The Below Cash Stock ~ And Debt Free

Two stocks were included in the writeup, Emerson Radio Corp. (MSN) and Career Education (CECO), and the article referred to the free list of stocks selling below cash at WallStreetNewsNetwork.com. One of the stocks which was one the list of about ten stocks was iGo, Inc. (IGOI), the company that makes and markets power products for mobile electronic devices, such as chargers and surge protectors. The stock was trading at 2.28 on Wednesday, and closed at 2.29 on Thursday. This was approximately a 36% discount to the company's cash per share. In addition, the company has no debt.

iGo Really Did Go - Up!!!

After the market close on Thursday, it was announced that Steel Excel (SXCL) made a cash tender offer to purchase up to 44% of the outstanding shares of the common stock of iGo at a price of 3.95 per share. This is a premium of over 71%.

Huge One Day Increase

On Friday, the stock opened at 3.37 on the news, and closed at 3.42 for the day, about a 50% increase (49.34% to be exact).

By the way, Emerson Radio is down eight cents from Wednesday, but Career Education is up 3.4%.

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

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

Stocks with High Cash per Share

It is not enough for a company to have lots of assets. Cash is king and stocks with lots of cash generally means that the company is in solid financial shape. It also makes the companies more appealing as takeover candidates, since the acquiring company can use that cash to help close the deal.

So what companies are cash heavy? Superior Industries International (SUP) makes and markets aluminum road wheels. This debt free company, which closed on Friday at 19.44, has $7.10 in cash per share. The stock trades at eight times earnings. Revenues for the latest quarter were up 13.5%, with revenues shooting up 80.6%. The stock even generates a yield of 3.3%.

Insperity (NSP) is a provider of human resources and business solutions for small and medium-sized businesses. The stock has almost $11 in cash per share and trades at 29.62. The company is debt free and trades at 15 times forward earnings. Earnings rose 39% on a 13.7% increase in revenues. The yield on the stock is 2%.

Richardson Electronics (RELL) is a provider of engineered solutions, customized display solutions, and power grid and microwave tubes that has a huge amount of cash per share, $9.50 in cash and the stock trades at only 12.22. This debt free company trades at 26 times forward earnings.

If you like specialized stock lists like this, check out the free lists at WallStreetNewsNetwork.com, which can be downloaded, updated, and sorted.

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