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Strategies & Market Trends : Low Price/Cash Ratio Value Stocks -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (433)	4/10/2001 2:11:09 PM
From: Q.	Read Replies (1) \| Respond to of 1931

CLTK and FNDT: two good stocks trading below net current assets. Net current assets is defined as current assets minus all liabilities. If a company has tons of cash and no LT debt, it will have lots of net current assets. CLTK is a Gallium Arsenide semiconductor foundry, with customers primarily in the cellphone handset industry. Tons of cash, annual cash burn of only 6% of working capital. It's down because of the sector cyclicality and related analyst estimate cuts, etc. FNDT is an Israeli maker of software for banks. Tons of cash, positive cashflow. Again, a victim of cyclicality and analyst cuts. I found both of these companies by using MSN's tool to search for stocks that at yesterday's price were trading below net current assets. I eliminated stocks below $50 M market cap, below $2 stock price, and I eliminated retailers and apparel makers because most of their current assets are inventory rather than cash. I then looked through the filings, analyst ratings, etc. to pick out the two stocks that looked the best.

To: peter michaelson who wrote (433)	4/23/2001 10:03:06 AM
From: Q.	Read Replies (1) \| Respond to of 1931

TMNG: p/e = 10, price/cash = 1.44 The company has guided estimates down to a still-profitable 0.10 per quarter, putting the forward p/e at 8.63. There are 3 analysts who rate the stock strong buy; analyst ratings have gone up as the stock has fallen. I haven't read any of their reports, but I would speculate that they increased their rating based on valuation. It isn't very often that you find a stock trading at such a low price/cash ratio that is profitable and cash-flow positive. This is an IT consulting company that focuses on telecom companies. Its has gotten trashed with other IT-related stocks, even though the business appears to be stable. Customers appear to be reasonable diverse, as compared to a comparably-sized peer stock I checked where there were three primary customers including Winstar which just went BK. 10k here: edgar-online.com "Competitors include general management consulting firms, the consulting practices of "Big Five" accounting firms, most of which have practice groups focused on the elecommunications industry and local or regional firms specializing in telecommunications services. "