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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (16393)	2/10/2003 11:16:28 AM
From: jeffbas	Respond to of 78498

MCsweet, as I may have commented here before, I think low price/cash ratios are generally a trap. You want a low price/cash ratio AND a business which which has real value, so you are getting a worthwhile business for next to nothing. If the business is basically worthless, I have no interest in owning a piece of cash run by someone else (who has already demonstrated they can't create value in a business). Lightbridge (LTBG), if you can get it at book value of about $5.75, with $4.80 per share in cash, no debt, buying back stock, a P/S of 1.25, and (modestly positive) earnings plus depreciation of about $.70 per share (recurring cash flow) is just my idea of such a stock. You are getting a real business for a buck at that price. Note the company is not forecasting any material improvement in results this year, although bringing credit checking to Internet transactions may have significant long term potential, starting this year.