PNX looks interesting. I like book value in these kinds of companies, since it is usually financially based (e.g. I love cash and and investment). The PE is a little rich, and I'm not sure what the recent downgrade was about, but the PB is attractive for this kind of company.
I own some REITs and some microcap stocks. I need to diversify into more general value stocks, but haven't had time to do much hwk, so only own a couple. The rest is in index and mutual funds.
My focus recently has been on stocks selling below cash value. You can call them microcap value stocks or, as my friends describe them, MICROCRAP stocks.
Right now, one of my plays is SOFN. I am hoping they will announce a liquidation plan within the next few days. I've made some good $$$ on SOFN, but am somewhat nervous right now.
Here are similar stocks I am interested in:
ISTN, VCLK, ALPH, VNWI, VCNT, PRTS
Instead of giving you a blow-by-blow on each stock, I'll give you the criteria I used to select them. The basic principle is decently run companies should sell for at least cash value:
1. Price below or near cash value (with no or very little debt)
2. Lawsuits, accounting problems, and/or other potential liabilities well known and at a minimum
3. Earnings and cashflow positive or at least close to break even
4. Management that doesn't intent on spending all my money
5. Potential for a catalyst that will allow me to realize the cash value or greater
6. Decent liquidity and price > 1.00 if possible. (I went against this principle with PRTS and am currently feeling the pain, but have decided to stick with PRTS because of its rich cash position. If fundamentals change, I may have to exit at a loss.)
MC |
