Some of these cigar-butts might just be good for one last puff or two, or more.
Carl Icahn should maybe take a look at this company.
Comdisco Holding Co. Inc. CDCO.OB They came out of bankruptcy in 2002 and ceased running any businesses and plan on giving all this cash to shareholders. There is a whopping $28 mil in net cash and the stock only trades for $29 mil. It looks like the company has been pretty idle for years and they are burning through cash every year except this year cash increased to $57 mil from $48 mil last year.
$4.95 Trades + $.65 per Contract - Market or Limit, No Minimums. www.TradeKing.com
They had $28 mil in revenue in 2006 which is down to $10 mil in 2008. The only big chunk of liabilities is contingent distribution rights at $22.4 mil and $10 mil in income tax payables. Here is what the annual report says,
"...The purpose of the company is to sell, collect or otherwise reduce to money in an orderly manner the remaining assets of the corporation. Pursuant to the company's first amended joint plan of reorganization (The "Plan") and restrictions contained in the company's certificate of incorporation, the company is specifically prohibited from engaging in any business activities inconsistent with its limited business purpose. Accordingly, within the next few years, it is anticipated that the company will have reduced all of its assets to cash and made distributions of all available cash to holders of its common stock and contingent distribution rights in the manner and priorities set forth in the plan. At that point, the company will cease operations and no further distributions will be made." - 10k 12/15/2008
RF Industries Ltd. RFIL
The company has increased shareholder equity every year since 2005 to $16 mil as of their recent filing. That is without major leverage. This growth in shareholder equity is 12.5% compounded compounded annually. It only has $1.8 mil in total liabilities against a whopping $17 mil in current assets. The stock is approaching Nov support of $3.75.
More Cheap Net-Nets in 2009
Hudson Highland Group Inc. HHGP
QLTI
SMRT
This memory stock looks cheap. I'm not a fan net-net's in tech or semi's but a valuation pricing it at less than net cash is interesting. We'll see what good cheap stocks 2009 will bring in the future.
DRAM "...a repurchase plan executed at the current market valuation of the company, would be the same as purchasing $1 dollar of cash for approximately 70 cents of common stock. Such a plan would make shares rally, significantly improve earnings per share, and show that the board is extremely confident in both the company's short term liquidity and it's long term operational" excellence.
One of the Cheapest Online Discount Brokers
full disclosure: no positions
Subscribe to:
Post Comments (Atom)
Mark In the News
Posts
Mark, thanks for the quote in your article... It is nice to see that someone else knows about, and likes QLTI.
Also, did you see DRAM's new program where you can buy their memory and not pay for 2 mos, returning if you don't like them? What is your reaction? I think that while it is a decent program, it will ultimately not create as much value as a buyback.
no I didn't see that. I guess as long as they are doing something to grow organically is good.
Looks like QLTI got hit. Have a look at SWIR. Seems cheap for a company still earning money. Will new aquistion hurt or help?
D
SWIR
I don't really know their industry well enough to know how they stack up against the competition or what to even expect from them. Business sure has been booming in Asia and America though. I really like the last financial report I could find from June 08. I'll put up my thoughts on this in a new post soon.
The potential problem with mergers is the amount of debt they could take on and the dealbreaker could be how much debt Wavecom had. Sierra seems to have been doing a good job of avoiding to much debt financing so it could be ok. Comes down to the debt most importantly in my opinion.