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Strategies & Market Trends : Low Price/Cash Ratio Value Stocks

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To: peter michaelson who wrote (433)	4/10/2001 2:11:09 PM
From: Q.	Read Replies (1) of 1931

CLTK and FNDT: two good stocks trading below net current assets. Net current assets is defined as current assets minus all liabilities. If a company has tons of cash and no LT debt, it will have lots of net current assets. CLTK is a Gallium Arsenide semiconductor foundry, with customers primarily in the cellphone handset industry. Tons of cash, annual cash burn of only 6% of working capital. It's down because of the sector cyclicality and related analyst estimate cuts, etc. FNDT is an Israeli maker of software for banks. Tons of cash, positive cashflow. Again, a victim of cyclicality and analyst cuts. I found both of these companies by using MSN's tool to search for stocks that at yesterday's price were trading below net current assets. I eliminated stocks below $50 M market cap, below $2 stock price, and I eliminated retailers and apparel makers because most of their current assets are inventory rather than cash. I then looked through the filings, analyst ratings, etc. to pick out the two stocks that looked the best.

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