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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (29196)	12/10/2007 7:47:44 PM
From: Paul Senior	Read Replies (1) of 78921

SGTL. Not sure of the definition of net cash that's being used. I see SGTL having cash and short-term investments of $74M or $2.06/sh. Yahoo shows no long term debt. $32M in accounts payable, somewhat offset by $22M in accounts receivable and $17M in inventory. finance.yahoo.com With stock at $2.04/sh., by my reckoning, with those cash and balance sheet numbers, a buyer pays for the cash in the till and gets the business for free. The issue is, is there a business there to be got? If they are losing money, apparently not, or not yet. SGTL did very okay when they were a supplier to Apple for Ipod or another product. But in subsequent iterations of the product, they didn't get Apple's business, which was significant business loss to SGTL. Hence the decline in stock price. I say SGTL's a buy if one buys these cash-rich cigar butts in a package of these things. My opinion same for GNSS. Although -uh - I had the same opinion too when both these were at higher prices than currently.

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