Did you read this article by Mr. Brush today?
This guy is pumping stocks that has high cash balance.
Yes, high cash reserve is good
but the company is NOT FREE, just because the company's cash balance is higher than the market cap.
The investor is not only picking up cash, but also PAYALBES AND LIABILITIES, duh...
I'll bet this idiot didn't even take a basic accounting 101.
I think the intention is clear, mislead public to pump few stocks...
or just simply dumb.
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Company Focus
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15 stocks you can buy for 'free'
Some companies have cash on hand that outweighs their market capitalization, but even then, they're not always a good deal. Here's how to find the ones that are.
By Michael Brush
If the market’s talking heads have your head spinning with their endless debate about whether stocks are overvalued on false dreams of recovery, here's a simple solution.
Try to put your money in businesses at the best possible valuation of all: for free.
This is easier than you might think. Many companies are sitting on loads of cash, in per-share amounts greater than what you might pay for their stocks, for two simple reasons:
They raised a ton of money during the 1990s stock market bubble.
The companies are in now much-hated sectors like e-business, business-to-consumer software or photonics -- remember those? These groups are so despised that the market has pummeled their stocks down to a hat size or less. And, more importantly, they’re trading at or below cash levels.
Consider Selectica (SLTC, news, msgs), a San Jose, Calif., company. Selectica provides software that helps companies sell goods on the Internet or through intranets, which are private networks connecting businesses. Its stock trades for below $2.70. The company has $2.90 per share in cash. So, buying stock in Selectica basically means you’re getting the business itself for free.Check out your options.
Record low rates
could save you a bundle.
That’s not a bad deal, if you believe that sooner or later the economy will pick up and demand is likely to return for this company, whose software is good enough for blue-chip customers such as General Electric (GE, news, msgs), Dell Computer (DELL, news, msgs), Cisco Systems (CSCO, news, msgs) and Aetna (AET, news, msgs).
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