AS - you said:
"LOR, SCNT and ESHR plus COMS I noticed now all well below cash in bank or less than half book value. LOR has liquidation value of $9 a share after debts now at all-time low below 3. ERICY now at 22 PE. WCOM, VZ at 11 PE. NT down at 1.3 times annual revenues"
Did you ever consider this:
1. Your dogs may be less than book value - but if they keep losing money - that will eat up those assets
Lets see - here is latest per share data from Yahoo:
LOR - BV $5.66 , Cash $1.34, earnings ($4.83), Quote $2.80
SCNT - BV $3.06, Cash $2.43, Earnings ($0.74), Quote $2.19
ESHR - BV $1.99, Cash $0.66, Earnings ($0.50), Quote $0.97
All 3 of these are burning thru their remaining cash. So, when you project their cash burn rate added to their assets - their current price does not seem like a bargain. in fact, looks like LOR will be out of business unless they can raise funds this year.
The only exception is COMS -
COMS BV $10.51, Cash $6.98, Earnings $0.31, Quote $6.31
Although COMS is in an out of favor sector - and earnings going forward seem to be turning down. That sadi, this is the only one that would be classified as a bargain based on your criteria of price to cash in bank
2. As far as ERICY at 22 p/e - get real. you can't look at historical p/e. you need to look at forward p/e - and ERICY is projecting a loss for the year - so NO forward p/e.
3. WCOM and VZ - who cares - telecom is dead. LD is a commodity. Sure, during the bubble years VZ traded at a 20+ p/e - but last year - it traded at 12 p/e - and pre-bubble 14 - 16. Maybe it is a bit undervlaued - but not something I would be buying based on whole telecom sector in disfavor. Until there is something to turn the whole telecom sector around, best case in these stocks is a quick scalp.
just my opinion |
