Stocks traded below cash
August 21, 2009
In November 0f 2008, there were over 300 stocks that traded below cash. Today this number is significantly lower. If a stock has a current Price/Cash ratio of under one, it means that the value of its high liquid assets is higher than its current market cap.
Some say that tha market is a discounting mechanism that tries to look 6 months ahead and therefore companies that are traded below cash are at that level for a reason. While this is a valid opinion and I respect the actions of the market, I can’t help but look for underappreciated stocks with potential for future price growth:
I scanned for stocks with P/C < 1 and EPS > 0
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