I don't know much about accounting, but it looks to me that the ratio mkt. cap./Stockholders equity is really close to 1 now ( 85.76 mil / 11-12 mil shares; price =7.4) for SIMSCI.
That means the stock is oversold. Correct ?!?
I would appreciate answers from people that know accounting...
Buy the way - Stockholders equity more then doubled (97/96) - see below, and the price is about half.
I think that SMCI is a great buy and hold till doubles...
And I did already put my money where my mouse is !!!
Simulation Sciences Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
Dec. 31, Dec. 31,
1996 1997
Assets
Cash and investments $ 26,321 $ 46,295
Accounts receivable, net 8,981 14,184
Unbilled accounts receivable, net 8,799 26,584
Property and equipment, net 4,045 4,962
Other assets 5,052 14,728
Total assets $ 53,198 $ 106,753
Liabilities and stockholders' equity
Liabilities $ 14,379 $ 20,993
Stockholders' equity 38,819 85,760
Total liabilities and
stockholders' equity $ 53,198 $ 106,753 |
