Steve, what you say about ADGO is true, it is not even close to being a below cash play.I bought when it was below 1.10$ and dirt cheap. however, i still think it's cheap now, with about 60c in liquid assets/share and earnings of 18c for 9 month this year you are paying a PE of 3 for the company sans the cash.
As i mentioned before just looking at below cash or book value is too simplistic, you need to look at the underlying business. with TFS and maybe even PRCS, i believe the underlying business is worth less then 0, as both companies are likely to burn lot's of money in the NT future. TFS is just a hopeless business, IMO with PRCS you have at least a crapshot on a new drug development, unless they continue to market Plenaxis, which is a looser. With ADGO on the other hand, i can expect the cash pile to grow and the copmpany to be even more valuable in the future. |
