The following small cap stocks feature high cash on the books, often worth close to or greater than the market value of the entire company, with little or no debt to speak of. Given these parameters, if these companies were liquidated today, an investor would get his or her money back and then some. When you buy these stocks, the cash on the books compensates you for the purchase outlay and you are getting the ongoing operations for free or better. The question than remains, are the ongoing operations worth anything? In cases where the company is profitable and you have every reason to believe that they would remain so in the short term, the investment merit is clear. For unprofitable businesses, one needs to dig deeper to figure out why, and whether there is something on the horizon to bring the business back to profitability. Regardless of whether the company makes money or not, the risk of investing in these stocks tend to be small given the solid balance sheet and the asset quality that supports the market valuation.
|Company Name||Ticker||Industry||P/E||P/B||Market Cap ($m)||Cash on Hand ($m)||Debt ($m)|
|BROADVISION INC||BVSN||Internet Software||-||1.00||45.65||49.47||-|
|SUFFOLK BANCORP||SUBK||Regional Banks||-||1.31||205.77||230.40||4.66|
|TRANSCEPT PHARMACEUTICALS INC||TSPT||Biotechnology||-||0.88||70.72||77.59||-|
|GENCOR INDUSTRIES INC||GENC||Construction||19.33||0.73||79.09||90.51||-|
|MAST THERAPEUTICS INC||MSTX||Biotechnology||-||0.76||43.86||53.42||-|
|CAREER EDUCATION CORP||CECO||Education||-||0.31||179.79||229.87||-|
|UNICO AMERICAN CORP||UNAM||Insurance||41.83||0.91||64.79||94.71||-|
|OAK VALLEY BANCORP||OVLY||Regional Banks||11.67||1.00||62.81||117.87||-|
|FIRST MARBLEHEAD CORP (THE)||FMD||Credit Services||-||0.55||94.18||137.09||-|
|EMERSON RADIO CORP||MSN||Electronic Equipment||-||0.73||51.01||61.32||0.06|
(Data as of intraday Sep 25, 2013)
In an effort to make this process more efficient, I will try and post the future screens in this format with enough data to give an initial picture of the stock. You can then use this information to do further research or just wait for me to post a review of these individual stocks over time. Screening is an essential part of my investment process and it is expected that from every screen a few of the stocks might make it to the watch list and then possibly turn into a recommendation (a premium feature).
As you work through this list, be aware of the banks and insurance companies where the cash on hand may include deposits and unearned premiums that are also a liability. Additionally, many of these companies may be cheap for a reason and it is important to figure out why they are cheap and make a judgment on whether the market has over reacted to the situation.