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Strategies & Market Trends : Low Price/Cash Ratio Value Stocks

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To: Jurgis Bekepuris who wrote (1473)10/21/2011 4:20:50 AM
From: Elroy  Read Replies (1) of 1931
 
GRVY:
- They are profitable, but barely.


Profitable companies seldom trade below cash value. GRVY is trading at about 1/2 of their cash position.

- They have not executed with Ragnarok 2 and may never execute.

True, it's hard to predict the future. Nevertheless, a profitable company with $60m cash and a market cap of $32m? Maybe the do execute on Ragnarok 2 - then what?

- The market has fallen producing values all around, so relatively speaking GRVY is less attractive. Even within the games sector, there are other opportunities that may be more compelling: http://finance.yahoo.com/q/bc?t=6m&s=GRVY&l=on&z=l&q=l&c=game%2C+pwrd%2C+cyou


I looked up PWRD - they have about $420m in cashlike instruments, and a market cap of $620m. PWDR's market cap would have to hit $210m to have similar value (just measuring cash) to GRVY. I didn't look up your other ideas.
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