fiber optics company NUFO was mentioned in today's NY Times, and it might be of interest because it has declined a lot, has a strong balance sheet, and is owned primarily by small investors:
However, I find that I'm unable to verify the numbers in the story. I find calculate about $7.88 cash per share as of Sept. 30, and this will decline due to an acquistion for 10,033,556 shares of New Focus common stock and $75 million in cash, which will close in January. The stock closed at 29. The story said they have $14 per share cash, which I think is erroneous:
New Focus at $20, off sharply from a high of $165 in July. "They're on the leading edge of fiber optics systems manufacturing and testing," he said.
The company is free of debt, he said, and has $14 a share in cash. He added that the shares, less the cash, trade at less than twice projected 2001 revenues of $200 million, a small fraction of the multiple for the industry leaders, JDS Uniphase and Corning. New Focus now trades at $28.94
Another complication I see with the stock is a flood of form 144, apparently 6 months after an IPO in May. I don't know how much longer this will continue. |
