One that I like is TMAX, or Toymax, trading at $5.44, with $1.74 per share cash, no debt.
$58 M marketcap.
Consistently positive earnings and cashflow on an annual basis.
This has decent value-stock criteria:
Price/book = 1.3,
p/e = 6.7 on TTM earnings and even lower on next-years estimates.
Price/cash = 3.1, which is far from the lowest you can find, but it is a comparatively safe stock, with good value criteria and reliably positive earnings & cashflow. In looking at low price/cash stocks, you typically get a tradeoff toward low market cap and negative cashflow for the lowest price/cash stocks, vs. a higher market cap and positive cashflow for the higher ratio stocks.
biz.yahoo.com
They are a toy manufacturer, which is of course a seasonal business, so they will report a loss for the June quarter as always, but their annual earnings are always positive.
yahoo.marketguide.com
I think the stock is beaten down because they reported a loss in the March quarter, vs. their more customary small profit. Longer-term, the price has slid steadily since the IPO in late '97, despite improving financial performance. The toys themselves are good, with a lot of big-name licenses and ties to good retailers.
finance.yahoo.com
During the year ending in March, they earned $8.6 M and had $5.4 M of positive cashflow
They have announced a stockbuyback, which is something I always like to see with low price/cash stocks.
I recently saw results of a study that showed that stocks that meet two criteria: an announced stockbuyback and a value-stock status, vastly out-perform the market during the 12 mos. following the stock-buyback announcement. TMAX announced theirs in May 99. |
