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

To: Jurgis Bekepuris who wrote (29196)	12/10/2007 7:47:44 PM
From: Paul Senior	Read Replies (1) \| Respond to of 79295

SGTL. Not sure of the definition of net cash that's being used. I see SGTL having cash and short-term investments of $74M or $2.06/sh. Yahoo shows no long term debt. $32M in accounts payable, somewhat offset by $22M in accounts receivable and $17M in inventory. finance.yahoo.com With stock at $2.04/sh., by my reckoning, with those cash and balance sheet numbers, a buyer pays for the cash in the till and gets the business for free. The issue is, is there a business there to be got? If they are losing money, apparently not, or not yet. SGTL did very okay when they were a supplier to Apple for Ipod or another product. But in subsequent iterations of the product, they didn't get Apple's business, which was significant business loss to SGTL. Hence the decline in stock price. I say SGTL's a buy if one buys these cash-rich cigar butts in a package of these things. My opinion same for GNSS. Although -uh - I had the same opinion too when both these were at higher prices than currently.

To: Jurgis Bekepuris who wrote (29196)	12/11/2007 12:55:19 AM
From: EACarl	Read Replies (1) \| Respond to of 79295

Sorry that you missed them Jurgis, they were cheaper when I posted the message. And yes, SGTL was selling less than cash. None of the three have any debt to deduct. Not sure what kind of calculation you're using. I'm glad Paul got it. Besides, the word I used was "near" which definitely qualified for GNSS as well. And by the way, they were not "buy now" calls. This is the "value thread" so I put them out there for all to see. Exactly when or if to pull the trigger is of course an individual decision. If you've got some that are cheaper price to cash, by all means show us.