net cash. Okay, the result though, the way "net cash" is defined, makes no substantial difference to how I might invest here.
If SGTL had no current liabilities and still had $2.06/sh. in cash and sold for $2.04/sh or even traded at $1.50 or lower, I doubt I'd consider it having much more of a margin-of-safety than where it is now with those current liabilities.
That is, because I don't know what management will do with the cash, the company is not currently profitable, I'm an outsider with no expertise in the business or understanding of the talent available (or missing) in their tech and management teams -- I am not likely to punch up my small bet on SGTL very much just because it would have lots more cash/sh. and lots less liabilities than what it actually has already.
I am guessing that it wouldn't make much difference to you either. That is, for these net current asset plays or net cash plays, you seem in previous posts to want the company you're looking at to show some profits and not losses. So I'd guess, that even if SGTL had no liabilities whatsoever and still had $2.06 in cash/sh., you'd not much be interested in buying many, if any, shares. Which is a more conservative and perhaps a better way, or at least another way, to play these things. |
