With the stock market tanking during the last couple weeks, there are currently over 250 stocks that not only sell below book value but also sell below cash per share. Plus, many of these companies have little or no debt.
Selling below cash means that if the corporation were to go out of business immediately, assuming the inventory, real estate, machinery, and other assets were totally worthless, there would still be enough cash in the bank to distribute to all shareholders at an amount higher than the current stock price.
One example is Wheels Up Experience (UP), a private aviation services company. This debt free company, with a market cap of $470 million, is trading 87% of its cash per share and 69% of its book value.
Earnings per share growth is expected to be over 30% next year. The price sales ratio for Wheels Up is an extremely superb 0.31.
Back in June, Goldman Sachs initiated coverage on the stock with a Buy recommendation. Wheels Up trades on the NYSE.
Another example is ContextLogic (WISH), which trades on NASDAQ. This ecommerce platform company has a market cap close to $1 billion. The stock price is trading at 97% of the cash per share, and the company has no debt.
The price sales ratio is a favorable 0.97 and earnings per share growth this year is 54.8%.
Here is a list of debt free and low debt stocks, selling below cash per share.
Company
Symbol
Market Cap
Wheels Up Experience Inc.
UP
470.27M
Atea Pharmaceuticals, Inc.
AVIR
650.02M
Bright Health Group, Inc.
BHG
1.03B
ContextLogic Inc.
WISH
919.01M
Ideanomics, Inc.
IDEX
304.08M
Keep in mind that these stocks are selling at a low price and have very low market caps for a reason, and are extremely speculative.
No recommendations are expressed or implied. Do your own due diligence.
Disclosure: Author didn’t own any of the above at the time the article was written.
This 1952 Topps Mickey Mantle #311 SGC Mint+ 9.5 card was described as “Finest Known Example!”.
In addition, Heritage announced that there will be a documentary made about the card called “Four Perfect Corners” by Emmy-Award winning director Dan Klein.
Mickey Mantle:
• Second highest career OPS+ among center fielders
• Highest stolen-base percentage in history at the time of his retirement
• Lowest career rate of grounding into double plays
• Highest World Series on-base percentage and World Series slugging percentage
• .984 fielding percentage when playing center field
• Hit 536 career home runs
• Batted .300 or more ten times
• Only player in history to hit 150 home runs from both sides of the plate.
• 16th all-time in home runs per at-bats
• 17th in on-base percentage
• MVP award three times, finished second three times, and finished within nine votes of winning five times.
When investing in collectables, make sure you stick with the scarce and rare items, and the items that you are personally interested in.
There is a way that traders and investors can make money on the long side from short squeezes. One strategy that stock traders use is buying short squeeze stocks, companies have been heavily shorted. Here is a more extensive explanation of short squeeze stocks.
When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.
Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.
Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:
Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.
Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.
Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.
So what stocks are heavily shorted that may be worth a closer examination? Check out the following list, but be aware, that have reasons for shorting these stocks.
Company
Symbol
Exchange
Short Interest
Short % Change
Short Ratio
Float
Bed Bath & Beyond Inc.
BBBY
Nasdaq
47.22%
2%
2.3
61.56M
Intercept Pharmaceuticals Inc
ICPT
Nasdaq
45.12%
4%
12.6
23.63M
Heron Therapeutics Inc
HRTX
Nasdaq
39.56%
1%
14.3
102.22M
SpringWorks Therapeutics Inc
SWTX
Nasdaq
38.77%
3%
9.4
31.64M
Big Lots, Inc.
BIG
NYSE
37.66%
1%
6.6
26.49M
MicroStrategy Inc
MSTR
Nasdaq
36.51%
-7%
3.2
9.32M
Upstart Holdings Inc
UPST
Nasdaq
35.73%
0%
2.4
72.32M
Big 5 Sporting Goods Corp
BGFV
Nasdaq
35.28%
2%
10.2
20.85M
Beyond Meat Inc
BYND
Nasdaq
35.12%
-7%
5.5
56.79M
Evgo Inc
EVGO
Nasdaq
34.98%
-2%
8.3
67.74M
Fubotv Inc
FUBO
NYSE
32.96%
10%
4.2
166.36M
Let’s take a look at two of these stocks and compare them.
Bed Bath & Beyond (BBBY) has been in the news extensively over the last couple weeks, going from 9 to 30 and back down to 9 again. You will notice that it is at the top of the short list. However, notice the Short Ratio, which is also the Days to Cover Ratio, of only 2.3.
This means that it would take the short sellers only a couple days to cover their position, based on current average volume. Plus there has only been a 2% increase in the short positions versus last month.
Now look at number two on the list, Intercept Pharmaceuticals (ICPT), which has a very high short ratio of 12.6, meaning that it would take almost thirteen days for the short sellers to cover. In addition, the percentage increase in short positions went up by 4%.
Just keep in mind that just because a stock has good earnings ratios and is heavily shorted, doesn’t mean that the stock won’t continue to drop, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.
Disclosure: Author didn’t own any of the above at the time the article was written.
The following is a short list of some of the many stocks going ex dividend during the next month.
The following is a short list of some of the many stocks going ex dividend during the next month.
Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.
This technique generally works in bull markets and flat or choppy markets, but during bear markets, you may want to consider avoiding this strategy. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until on or after the ex date.
The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million. Some of the stocks have yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and the annual yield.
Dominion Energy, Inc. (D)
9/1/2022
0.668
3.12%
Nike, Inc. (NKE)
9/2/2022
0.305
1.08%
H&R Block, Inc. (HRB)
9/7/2022
0.29
2.43%
Kimberly-Clark Corporation (KMB)
9/8/2022
1.16
3.39%
HP Inc. (HPQ)
9/13/2022
0.25
2.92%
Coca-Cola Company (KO)
9/15/2022
0.44
2.70%
Restaurant Brands International (QSR)
9/20/2022
0.54
3.65%
ConocoPhillips (COP)
9/29/2022
1.40
1.83%
Republic Services, Inc. (RSG)
9/30/2022
0.495
1.35%
The entire list of over 200 ex-dividend stocks will be emailed to all subscribers early next week, on Tuesday, August 25, 2022. If you are not a subscriber, you can sign up at the signup box below. Don’t miss out. Remember, it’s free!
Dividend Definitions
Declaration date: the day that the company declares that there is going to be an upcoming dividend.
Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.
Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.
Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.
Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.
Disclosure: Author did not own any of the above at the time the article was written; affiliate links are on this page.
Yesterday, Friday, August 19, 2022, in spite of the stock market being down, there were several stocks that actually made new highs.
Many stock traders believe that when a stock makes a new high, it is bullish for the stock.
Plus if a stock makes new highs on a day when the stock market drops, then that is very positive for the stock and extremely bullish.
So yesterday, the S&P 500 was down 55, the Dow Jones Industrial Average was down 292, and the NASDAQ was down an incredible 260, which was a drop of more than 2%.
In spite of that, there were a select few companies that did rise on Friday.
The following is a group of the new high stocks, most of which are biotech companies.
Axsome Therapeutics (AXSM)
NL Industries (NL)
ADMA Biologics (ADMA)
Intercept Pharmaceuticals (ICPT)
Supernus Pharmaceuticals (SUPN)
Artesian Resources (ARTNA)
Keep in mind that some of these stock are very low cap and therefore very speculative.
If you have not heard of BDCs, they may6 be worth a look. BDC stands for Business Development Company.
BDCs are closed-end investment funds that invest in small and mid-sized businesses, either through equity investments, debt, or both.
They avoid double taxation, similar to REITs, as long as at least 90% of earnings are distributed to shareholders. There is no taxation at the corporate level.
Many income investors like to invest in BDCs for their income, with dividend yields as high as 11%.
One example of a high income BDC is Ares Capital (ARCC), a Los Angeles based company that offers a yield of 8.8%. This BDC has a market cap of $10 billion and pays its dividend quarterly.
Another high yield BDC is Golub Capital BDC (GBDC), which pays a yield of 8.76%. It also has a quarterly dividend payment schedule. This New York City based company has a market cap of $2.4 billion.
There are actually ten BDCs that yield over 8%, with one yielding 11%. In addition, three of the stocks pay dividends monthly.
The entire list of 10 BDC stocks paying over 8% will be emailed to all subscribers this weekend, on Saturday, August 13, 2022. If you are not a subscriber, you can sign up at the signup box below. Don’t miss out. Remember, it’s free!
Of course, there is aways risk, especially since the BDCs invest in smaller companies.
He paid $294,338 for it back in 2006, and recently sold it through a private sale for $7.25 million.
This works out to an average annual return of 22%.
This extremely rare slabbed Honus Wagner T-206 baseball card was authenticated by SGC.
The back of the card displays an ad for Sweet Caporal Cigarettes.
Honus Wagner Baseball Card – Credit: Wikipedia
Honus Wagner, born Johannes Peter Wagner, was an American baseball shortstop who played 21 seasons in Major League Baseball from 1897 to 1917, almost entirely for the Pittsburgh Pirates.
Wagner won his eighth (and final) batting title in 1911, a National League record that remains unbroken to this day, and matched only once, in 1997, by Tony Gwynn. He also led the league in slugging six times and stolen bases five times.
Wagner was nicknamed “the Flying Dutchman” due to his superb speed and German heritage.
In 1936, the Baseball Hall of Fame inducted Wagner as one of the first five members. He received the second-highest vote total, behind Ty Cobb’s 222 and tied with Babe Ruth at 215.
Most baseball historians consider Wagner to be the greatest shortstop ever and one of the greatest players ever. Ty Cobb himself called Wagner “maybe the greatest star ever to take the diamond”.
Wagner was a non-smoker and reportedly didn’t want his card to promote cigarets, so production of the cards was stopped, with less than 60 known to exist.
If you have an interest in baseball and other sports cards, don’t forget to check out the following articles:
