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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (12037)	2/27/2009 12:10:14 PM
From: Elroy	Read Replies (1) \| Respond to of 33421

I snatched up SNDK in early Dec. when it was trading at around $5.75 and cash was up around $7.00/share. I sold too soon, but that was another example of discount to cash. The key is to get them after a reversal off a major low. Perhaps you're scoring cash and not counting debt? I don't think SNDK had net cash of $7 recently. Also, SNDK has massive capital spending requirements, which the fabless semi companies (like ZRAN) don't have. If you can buy a major fabless semi company at a 70$% discount to net cash, there is no major key other than the world going to hell in a handbasket. Stocks with variable cost structures can't stay below cash for years.