The basic idea behind value investing is to buy stocks that have greater intrinsic value than the market is valuing it for. Essentially, price is less than the value.
Now value can be a tough nut to crack in many cases. But not for the stocks I have listed here for you today.
These stocks are straightforward to value. They have more cash on the books than the entire market value of the company.
Bonus! They have no debt. So, they do not owe any money to anybody. It is all shareholders, so to speak.
When you are looking at stocks like these, the question for a value investor changes. We agree that the company is worth more than its price, at this point in time. The new question is: is the company likely to increase its value in the future or are we in for value erosion?
As you go through this list, continue to ask this question. A lot of investment potential will rest on the management strategy, skills, and clarity of vision, and for the biotechs in this list, also a little bit of luck as a lot might depend on clinical trial results and FDA approvals and such.
The criteria for the screen:
Pretty simple really. I am looking for all companies above $30 million in market cap that have Cash/Price ratio at 1 or greater, and no debt.
The Screen Results
| Symbol | Company Name | Price | Market Cap | Cash/Price Ratio | Dividend Yield | Industry |
|---|---|---|---|---|---|---|
| ALRN | Aileron Therapeutics Inc | 2.92 | $43.02M | 1.00827 | Biotechnology | |
| AGTC | Applied Genetic Technologies Corp | 4.45 | $80.61M | 1.38689 | Biotechnology | |
| CBIO | Catalyst Biosciences Inc | 10.93 | $130.54M | 1.04431 | Biotechnology | |
| CCUR | CCUR Holdings Inc | 4.9 | $46.77M | 1.30689 | 9.80% | — |
| CLDX | Celldex Therapeutics Inc | 0.502 | $78.61M | 1.45025 | Biotechnology | |
| CRNX | Crinetics Pharmaceuticals Inc | 29.99 | $65.71M | 1.12224 | Biotechnology | |
| DYAI | Dyadic International Inc | 1.54 | $43.21M | 1.08273 | Life Sciences Tools & Services | |
| MSN | Emerson Radio Corp | 1.46 | $33.29M | 1.23461 | Household Durables | |
| GIGM | GigaMedia Ltd | 2.9 | $32.05M | 1.91084 | Software | |
| GLRE | Greenlight Capital Re Ltd | 12.85 | $480.78M | 4.47418 | Insurance | |
| JFBC | Jeffersonville Bancorp | 19.1 | $80.89M | 1.08736 | 3.14% | Banks |
| OPHT | Ophthotech Corp | 2.56 | $92.64M | 1.57587 | Biotechnology | |
| OTIC | Otonomy Inc | 3 | $91.73M | 1.0902 | Pharmaceuticals | |
| SRRA | Sierra Oncology Inc | 1.76 | $130.79M | 1.02327 | Biotechnology | |
| VICL | Vical Inc | 1.39 | $30.32M | 1.71801 | Biotechnology |
My Thoughts and Advice on these Stocks
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