Response to PM on my definition of "net net":
A company whose market cap trades below it's quick assets. LBRT illustrates how I define or analyze quick assets. These are usually rare sightings, but this market and especially in tech, are turning up more and more. When spotted on a Red Herring (or other)"change the world" or dominant player industry briefing list, I tend to take notice!
biz.yahoo.com
Here we see 111.4 cash (count), 106.2 ST investments (count, usually bank deposits or bonds of short maturity), 207.8 LT investments: usually count all, longer dated bonds, sometimes stock which would need to be marked to market and followed. Receivables: I'd count all as they don't seem out of line with sales base, if you find one you're concerned about (too large relative to revenue base, or at risk customers) adjust. Other (count, it's a small number unless you had "other" knowledge.
Total quick assets for LBRT is 449.3, subtract all liabilities including long term debt of 48.6 equals 400.7. LBRT is buying and merging with an outfit called Sigma. Per conference call mgt suggests that the acquisition and the current $6m/month burn rate will bring the 400 number down to 350 for the Sept. quarter.
Shares out are 107.6 @ 1.60= 172 market cap. Trades at about 50% of quick assets, and that's fairly remarkable considering the company feels breakeven is achievable by the May, 03 quarter. And they are doing business to the tune of 80m in sales. Looks like a large tax loss carryforward is available to boot if this one is bought out. |
