Many companies are trading below cashin this market. The market values them at less than the cash balances that would be left over after paying off debt.
Brian Tang, president of Fundamental Research Corp., can vouch for that. Using data from Reuters Knowledge (in U.S. dollars), his company recently screened for stocks trading below their net cash value on North American exchanges. For good measure, they screened out those with price-earnings ratios above 10 and three-year revenue growth under 5%.
They found dozens, which were winnowed down to 19 that might be worth further research. Three on U.S. exchanges were: Thomas Group Inc.(TGIS), Trident Microsystems Inc.(TRID), and TTI Team Telecom(TTIL).
TGIS, TRID and TTIL have market caps of $13.2 million, $119.4 million, and $17.4 million, respectively. Their cash holdings exceed market cap and debt by $1 million, $90 million, and $9.5 million.
There were just three on Canadian exchanges: HudBay Minerals Inc.(HBM), Orvana Minerals Corp.(ORV), and Jemtec Inc.(JTC).
HBM, ORV, JTC have market caps of $560 million, $47.5 million, and $1.6 million, respectively. Their cash holdings exceed market cap and debt by $47 million, $45 million, and $1.4 million.