Tag: below cash

The “Cash-Rich” Bargain: Trading Below Cash per Share

by Fred Fuld III

In the world of value investing, few metrics signal a potential “steal” more than a stock trading below its cash per share. This scenario suggests that if a company were to shut its doors today, pay off all its obligations, and distribute the remaining cash, you would potentially walk away with more money than you paid for the stock. Essentially, the market is valuing the actual business operations at less than zero.

Why Investors Hunt for “Negative Enterprise Value”

When a stock’s price is lower than its net cash (cash minus total debt) per share, it provides a unique margin of safety.

  • Liquidation Value: The company is theoretically worth more dead than alive.
  • Acquisition Magnet: These companies are prime targets for buyouts, as an acquirer could use the company’s own cash to help fund the purchase.
  • Buyback Potential: Management can use that excess cash to buy back shares, drastically increasing the ownership stake of remaining shareholders.

The Red Flags: Why the “Bargain” Might Be a Trap

If it sounds too good to be true, sometimes it is. A stock trading below its cash value is often a signal of extreme market pessimism. You must watch out for:

  1. High Debt Loads: If a company has $10 in cash per share but $15 in debt, it isn’t “cheap”—it’s underwater. Always look at Net Cash (Cash – Total Debt).
  2. Cash Burn: In industries like biotech or tech, a company might have a mountain of cash today but be losing so much money monthly that the cash will be gone in a year.
  3. Governance Issues: Sometimes cash is “trapped” in foreign subsidiaries or controlled by management that refuses to return it to shareholders.

Profile of Potential Value Stocks

While some companies often have high cash balances, it is vital to distinguish between Gross Cash and Net Cash (after debt).

Harley-Davidson (HOG)

Harley-Davidson often appears in value screens due to its massive financing arm (HDFS), which holds significant cash but also carries substantial debt.

  • Market Status (Feb 2026): Trading around $20.14.
  • The Profile: HOG is currently viewed as a deep-value play, trading at a P/E of roughly 4.7x, significantly below its peers.
  • Watch Out For: The company faces declining motorcycle shipments (down ~17-22% recently). Its cash is often tied to its financial services wing, meaning the “cash per share” can be misleading if you don’t account for the debt used to fund those motorcycle loans.

Interactive Brokers (IBKR)

As a brokerage, IBKR’s balance sheet is unique. It holds vast amounts of client cash, which can inflate “cash per share” metrics.

  • Market Status (Feb 2026): Trading around $74.90.
  • The Profile: IBKR has seen a massive run-up (up 30% in the last year). It holds over $105B in cash and short-term investments, but its debt-to-equity ratio sits at about 121%.
  • Watch Out For: Valuation. While cash-rich, many analysts consider it overvalued at current prices because the market is already pricing in high interest-income margins.

TriNet Group (TNET)

TriNet provides HR solutions and often carries a “light” balance sheet with significant cash flow.

  • Market Status (Feb 2026): Trading around $42.00 after a recent 28% plunge.
  • The Profile: Following a lowered 2026 outlook, the stock is currently in the “doghouse.”
  • Watch Out For: Rising healthcare costs are eating into their margins. While they have a history of aggressive buybacks, the current net loss in Q4 2025 suggests the cash pile might be needed for operations rather than being “excess.”

WEX Inc. (WEX)

WEX operates in the financial technology space, focusing on fleet and corporate payments.

  • Market Status (Feb 2026): Trading around $157.00.
  • The Profile: Analysts suggest the stock is significantly undervalued based on future cash flow models (some estimates as high as $400/share).
  • Watch Out For: High Leverage. WEX has a debt-to-equity ratio of 4.49, which is much higher than the industry average. This is a classic example of where “cash per share” can be a trap if you ignore the massive debt obligations.

Keep in mind that cash may not always be king.

Disclosure: Author owns HOG.

Bargain Hunters’ Delight: Four Stocks Trading Below Cash Per Share with Minimal Debt

by Fred Fuld III

In the volatile world of stock investing, few opportunities scream “value” louder than companies trading below their cash per share. This phenomenon occurs when a stock’s market price is lower than the amount of cash and cash equivalents divided by the number of outstanding shares—essentially meaning investors can buy a dollar’s worth of cash for less than a buck. When paired with little to no debt, these stocks offer a rare combination of safety and upside potential.

Why Buy Stocks Below Cash Per Share?

The allure is straightforward and compelling. First, downside protection is baked in: In the worst-case scenario, the company could liquidate its cash holdings, pay off any nominal debt, and return value to shareholders exceeding the current purchase price. This acts as a financial floor, shielding investors from total loss. Second, it often implies the underlying business is “free”—you’re paying for the cash pile but getting the operations, intellectual property, and growth prospects thrown in at no extra cost. Third, low-debt profiles minimize bankruptcy risk and interest burdens, allowing management flexibility to pivot, invest in R&D, or pursue acquisitions without the drag of leverage. Historically, such setups have attracted value investors like Warren Buffett, who famously sought “cigar butt” stocks—cheap, undervalued assets with one last puff of potential.

As of late September 2025, amid market rotations and sector-specific pressures, four notable names fit this profile: Alumis (ALMS), Arvinas (ARVN), Green Dot (GDOT), and Keros Therapeutics (KROS). These span biotech innovation and fintech stability, all with enterprise values dipping negative due to cash hoards outpacing market caps. Let’s dive in.

Alumis Inc. (ALMS): Precision Immunology on the Cheap

Alumis Inc. is a clinical-stage biopharmaceutical company laser-focused on immune-mediated diseases, leveraging a precision medicine platform to develop oral small-molecule therapies. Founded on cutting-edge genomics and AI-driven drug design, the company aims to transform treatments for conditions like psoriasis and atopic dermatitis, where current options fall short in efficacy or convenience.

Financially, Alumis is a textbook cash-rich bargain. As of June 30, 2025, it held $486.32 million in cash against just $38.78 million in debt—barely 8% of its liquid assets. With 96.88 million shares outstanding, that’s $5.02 in cash per share, dwarfing the September 26 closing price of $4.05 and a market cap of $421.46 million. Enterprise value? A negative -$26.08 million, signaling the market is essentially ignoring the biotech’s pipeline while over-discounting risks in early trials.

For investors, this setup offers fortress-like protection: Even if development hits snags, the cash runway extends years, funding Phase 2 readouts without dilution. Upside? Successful precision therapies could multiply value in a $100 billion immunology market.

Arvinas Inc. (ARVN): Degrading Disease Proteins for Pennies

Arvinas stands at the forefront of targeted protein degradation, pioneering PROTAC (proteolysis targeting chimeras) technology to tag and destroy disease-causing proteins inside cells—a leap beyond traditional inhibitors. The New Haven-based biotech targets oncology and neuroscience, with lead candidates like vepdegestrant in Phase 3 for breast cancer and ARV-102 advancing for neurodegenerative disorders.

On the balance sheet, Arvinas is awash in liquidity. Q2 2025 cash stood at $861.2 million, offset by a negligible $9.9 million in debt. Divided by 73.42 million shares, cash per share hits $11.73—well above the $8.27 close on September 26, with a $607.16 million market cap yielding a negative enterprise value of -$244.14 million. This undervaluation stems from trial delays and partnership dynamics, but the debt-free status (effectively) ensures no forced capital raises.

The advantage here is asymmetric: Minimal downside from the cash buffer, while PROTAC breakthroughs could validate a platform worth billions, attracting big pharma buyouts.

Green Dot Corporation (GDOT): Fintech Fortress with a Massive Cash Vault

Unlike its biotech peers, Green Dot Corporation operates in the more grounded realm of financial technology. As a registered bank holding company, it powers prepaid debit cards, digital banking, and payment platforms for underserved consumers and businesses—think Walmart’s MoneyCard or its B2B embedded finance solutions. Headquartered in Austin, Green Dot processes billions in transactions annually, capitalizing on the shift to cashless economies.

What sets it apart? An eye-popping $2.31 billion cash pile as of June 30, 2025, against $73.39 million in debt—less than 4% leverage. Per 55.39 million shares, that’s $41.71 in cash per share, towering over the $14.20 closing price and $786.58 million market cap. Enterprise value clocks in at a bizarre negative -$1.45 billion, reflecting regulatory headwinds and competition from neobanks, but underscoring the embedded value.

Investors get a stable, revenue-generating business (with recurring fees) essentially for free, backed by a war chest that could fuel acquisitions or share buybacks. Low debt amplifies resilience in economic downturns, when demand for affordable banking spikes.

Keros Therapeutics Inc. (KROS): Hematology Hope at a Discount

Keros Therapeutics is a clinical-stage biopharma zeroing in on hematologic disorders, developing novel activin receptor inhibitors to boost red blood cell production and treat conditions like myelodysplastic syndromes (MDS) and anemia. Its lead asset, KER-050, is in Phase 2 trials, with potential to address unmet needs in a market dominated by injectables.

Balance sheet-wise, Keros mirrors its peers: $690.21 million in cash at Q2 2025, dwarfing $17.95 million in debt. Cash per share? $17.00 across 40.62 million shares—edging out the $16.05 September 26 close and $651.88 million market cap, for a negative enterprise value of -$20.38 million. Clinical setbacks have pressured the stock, but the near-debtless structure provides a multi-year runway.

This translates to high-conviction value: Cash covers the downside, while positive trial data could catalyze a rerating in the $20 billion hematology space.

Navigating Risks in Cash-Rich Bargains

While these stocks offer compelling safety margins, they’re not risk-free. Biotechs like ALMS, ARVN, and KROS face binary trial outcomes and regulatory hurdles, potentially eroding cash through burns (though runways are long). GDOT contends with fintech disruption and consumer spending cycles.

In a market chasing growth narratives, these cash-heavy underdogs represent a contrarian play. With minimal debt and prices below cash per share, they embody the ultimate margin of safety—perfect for patient investors eyeing 2026 catalysts. As always, due diligence and diversification are key, but for value seekers, this quartet is worth a deeper look.

Disclosure: Author didn’t own any of the above at the time the article was written. No investment recommendations are expressed or implied.

Top No Debt & Low Debt Stocks Selling Below Cash Per Share

by Fred Fuld III

Investing in stocks that are trading below their cash per share can present compelling opportunities, particularly for value-oriented investors. This situation arises when a company’s market capitalization is less than the total cash (or cash equivalents) it holds, divided by the number of shares outstanding. In effect, it means you are buying cash at a discount, potentially gaining access to additional assets — such as property, equipment, or intellectual property — for free.

One of the primary advantages of this type of investment is the built-in margin of safety. This concept, popularized by Benjamin Graham, suggests that when you’re paying less than a company’s net cash value, your downside is limited. Even if the business performs poorly or winds down operations, the liquidation value of its assets — particularly cash — may exceed the stock’s current market price, reducing the risk of a permanent loss.

Such companies also tend to attract activist investors who recognize the disparity between intrinsic and market value. These activists may push for actions like special dividends, share buybacks, or even the sale or liquidation of the company, all of which can unlock hidden value for shareholders. Similarly, businesses trading below cash per share can become attractive acquisition targets. A buyer may see an opportunity to extract immediate value by taking control of the cash and monetizing other assets or operations.

A strong cash position also offers optionality. Companies with excess cash can invest in new opportunities, navigate downturns without raising debt, or repurchase shares when they are undervalued. If managed wisely, these actions can significantly enhance long-term shareholder value.

Investors should note, however, that not every company trading below cash per share is a bargain. Sometimes, cash balances may not be as liquid or accessible as they appear — for instance, if they are held in overseas accounts subject to repatriation taxes. Moreover, a high cash position might be misleading if the company is rapidly burning through it due to poor operations or heavy losses. Poor management, regulatory issues, or the risk of delisting can also justify why the market has heavily discounted the stock.

There are several examples of biotechnology stocks that are trading below cash per share, such as Olema Pharmaceuticals, Inc. (OLMA), which is a clinical-stage biopharmaceutical company, focusing on development and commercialization of targeted therapies for women’s cancers. 

The company is debt free, trades at 84% of book value, and 82% of cash per share. The important factor you have to be aware of with biotechs is the burn rate, which in simple terms, relates to how long the company will last assuming losses will continue to eat away at the cash position, assuming no additional funding. In the case of Olema, it has $434 million in cash but losing about $129 million per year. This means that the company can hold out for about three and a third years, assuming all else remains equal.

One company in the industrial sector that trades below cash is NET Power, Inc. (NPWR). The company is a U.S.-based energy technology company founded in 2010 and headquartered in Durham, North Carolina. The company is developing the NET Power Cycle, a proprietary natural gas power generation system that inherently captures carbon dioxide [CO₂] emissions. This technology aims to produce low-cost, clean, and reliable electricity while minimizing environmental impact.

The NET Power Cycle utilizes a highly recuperative oxy-combustion process, combining oxy-combustion and a supercritical CO₂ power cycle. This design enables the system to generate electricity while capturing CO₂ emissions, reducing air pollutants such as sulfur oxides [SOX], nitrogen oxides [NOX], and particulates. The company targets a range of customers, including electric utilities, oil and gas companies, midstream operators, technology firms, and industrial facilities, both domestically and internationally.

NET Power operates a demonstration facility in La Porte, Texas, which serves as a proof of concept for its technology.The company is also working on Project Permian and other development projects to expand its technology’s deployment.

The company has no debt and trades at a 25% discount to cash per share, and an incredible 20% of book value. As of May 16, 2025, NET Power’s market capitalization was approximately $370 million. The company has experienced significant stock price volatility, with a 52-week high of $14.28 and a 52-week low of $1.56.

Financially, NET Power reported a net loss of $157.12 million over the trailing twelve months, with revenue of $250,000. The company had $533 million in cash, cash equivalents, and investments as of the end of 2024, providing a solid financial foundation for ongoing development and deployment efforts.

NET Power’s major shareholders include Occidental Petroleum Corporation, which holds a 45.18% stake, and other investors such as Greenlight Capital.

One other stock trading below cash with a relatively small amount of debt is Green Dot Corp. (GDOT). The company is a financial technology and registered bank holding company headquartered in Austin, Texas. Founded in 1999 by Steve Streit, the company initially focused on providing prepaid debit cards for teenagers to shop online. Over time, Green Dot expanded its services to cater to the “unbanked” and “underbanked” populations, offering a range of financial products and services.

Today, Green Dot operates as a “branchless bank,” delivering banking and payment solutions through a cloud-based technology platform. The company offers various products, including prepaid MasterCard and Visa cards, mobile banking accounts, and secured credit cards. Green Dot’s services are available through a vast network of retail locations, online platforms, and partnerships with companies like Apple, Uber, Intuit, and Walmart.

One of Green Dot’s notable offerings is GO2bank, a digital and mobile bank account designed to provide simple, secure, and useful banking services, particularly for Americans living paycheck to paycheck. Additionally, the company operates the Green Dot Network, which includes over 90,000 retail distribution and cash access locations nationwide, enabling customers to deposit and withdraw funds conveniently.

Green Dot has also ventured into embedded finance through its platform, Arc by Green Dot, which combines the company’s banking and money processing capabilities to support businesses at various stages of growth. Furthermore, the company owns Santa Barbara Tax Products Group, a subsidiary that processes more than 14 million tax refunds annually.

The stock amazingly trades at only 28% of the cash per share, and 55% of book value per share. Although they lost 12 cents a share for the latest reported year, the estimated earnings for next year is $1.47 per share. Sales have grown by 19% year-over-year and by over 23% for the latest quarter versus the same quarter last year.

As of May 17, 2025, Green Dot’s stock price is $9.44 per share, with a market capitalization of approximately $500 million. The company employs around 1,200 people and continues to focus on expanding its digital banking services and partnerships to reach a broader customer base.

While rare, stocks selling below cash per share with little or no debt can signal a market overreaction or neglect, and these shares may rebound sharply when sentiment changes or fundamentals improve.

Disclosure: Author didn’t own any of the above shares at the time the article was written.

Cheap Stocks: Stocks Selling Below Cash per Share with No Debt

by Fred Fuld III

If you are looking for a stock that has limited downside, it is hard to beat a stock that is trading at a price below the amount of cash it has per share, and on top of that, has little or no debt. 

If a debt free company is selling below its cash per share, and if the company were to go out of business today, assuming all the company’s assets are completely worthless except for the cash, then an investor would have a guaranteed profit.

This biggest problem with these below-cash stocks is that sometimes corporate spending can deplete cash very quickly.

There are actually a few companies that all into this category, in spite of the fact that the stock market is trading near an all time high.

LendingClub Corp. (LC), which provides an online marketplace that facilitates loans to borrowers and investments, is trading at a 27$ discount to cash per share.

LendingClub is a financial services company headquartered in San Francisco, California. It was founded in 2007 and is the first peer-to-peer lender to register its offerings as securities with the Securities and Exchange Commission (SEC) and to offer loan trading on a secondary market.

Today, LendingClub is more than just a peer-to-peer lender. It is a full-spectrum fintech marketplace bank that offers a variety of financial products and services to its members, including:

  • Personal loans: LendingClub offers personal loans for a variety of purposes, such as debt consolidation, home improvement, and medical expenses.
  • Savings accounts: LendingClub offers high-yield savings accounts with competitive interest rates.
  • Certificates of deposit (CDs): LendingClub offers CDs with a variety of terms and interest rates.
  • Checking accounts: LendingClub offers checking accounts with features such as mobile banking and bill pay.
  • Business loans: LendingClub offers small business loans for a variety of purposes, such as working capital, expansion, and equipment financing.
  • Auto refinance loans: LendingClub offers auto refinance loans to help borrowers lower their interest rates and monthly payments.
  • Patient solutions: LendingClub offers patient solutions to help borrowers with medical bills.
  • K-12 education loans: LendingClub offers K-12 education loans to help parents finance their children’s education.

As of December 31, 2023, the company had over 4.7 million members and had originated over $80 billion in loans.

The stock is selling at a 24% discount to its book value, and has an excellent price to sales ratio of 0.75.

This $946 million market cap company has a trailing price to earnings ratio of 24 and a forward P/E of 10. Earnings per share growth next year is anticipated to be 270.66%.

American Well Corp. (AMWL), which provides online healthcare services, is trading at an amazing 24% discount to its cash per share, and the amount of long term debt being very low. The market capitalization is $316 million.

American Well Corp., operating as Amwell, is a leading company in the telemedicine field, headquartered in Boston, Massachusetts. They connect patients with doctors through secure video consultations, offering a convenient and flexible alternative to traditional in-person visits. Amwell primarily operates through two arms:

  1. Platform solutions: They provide a subscription-based platform to healthcare providers, enabling them to offer telehealth services to their patients. This includes features like scheduling, video conferencing, and electronic health record integration.
  2. Direct-to-consumer services: Through their Amwell Medical Group, patients can connect with licensed doctors directly for various non-emergency concerns,receiving diagnoses, prescriptions, and referrals if needed.

Amwell boasts a vast network, partnering with 55 health plans, 240 health systems, and over 40,000 providers, reaching millions of patients across the US. They also offer specialty consultations, chronic condition management programs, and are continuously expanding their services in this ever-evolving healthcare landscape.

The company has $538 million in cash, yet only $11.8 million in long term debt.

The stock has a reasonable price to sales ratio of 1.18 and an excellent price to book value of 0.63. Unfortunately, the company has been generating negative earnings.

NET Power, Inc. (NPWR), a $596 million market cap company, is a provider of clean energy technology.

Net Power Inc. is a clean energy technology company aiming to revolutionize power generation with their “energy trifecta”: clean, reliable, and low-cost energy. Founded in 2010 and headquartered in Durham, North Carolina, they focus on natural gas as a fuel source while capturing and sequestering the resulting CO2 emissions.

Their key innovation lies in the NET Power Cycle, an oxy-combustion process that combusts natural gas with pure oxygen. This unique method captures over 97% of carbon dioxide at the source, significantly reducing greenhouse gas emissions compared to traditional methods. Additionally, the captured CO2 can be used for industrial purposes or safely stored underground, further minimizing environmental impact.

The stock is trading at 92% of its cash per share and has no debt. Earnings have been negative.

Just Remember this About Below Cash Stocks

Often there are significant (negative) reasons why stocks sell below cash. In addition, these stocks are very low cap, so they should all be considered extremely speculative.

Disclosure: Author didn’t own any of the above at the time the article was written.

Three Stocks Selling Below Cash per Share

by Fred Fuld III

Cash per share is a financial metric used in stock fundamental analysis to assess a company’s financial health and its ability to meet its short-term obligations. It represents the amount of cash a company has on hand per outstanding share of its common stock. This metric is calculated by dividing the total cash and cash equivalents a company holds by the number of outstanding common shares.

Cash per share is important in fundamental analysis for several reasons:

  1. Liquidity Assessment: It provides insights into a company’s liquidity, indicating how much cash is readily available to cover its immediate financial needs. Higher cash per share suggests better liquidity and a lower risk of financial distress.
  2. Risk Mitigation: Companies with a significant cash reserve per share are better positioned to weather economic downturns, financial crises, or unexpected expenses without resorting to debt or diluting shareholder equity.
  3. Investor Confidence: A high cash per share ratio can enhance investor confidence, as it signals that the company has the financial flexibility to invest in growth opportunities, pay dividends, or repurchase shares.
  4. Acquisition Potential: Companies with substantial cash per share are often viewed as attractive targets for mergers and acquisitions, as their cash reserves can be used to fund such activities.
  5. Capital Allocation: It can assist investors in evaluating a company’s capital allocation strategy. If a company is accumulating cash but not deploying it effectively, it may indicate that management lacks a clear plan for growth or shareholder value creation.
  6. Comparison: Cash per share can be used to compare a company’s financial strength with that of its peers in the same industry or sector. It helps investors identify companies with relatively stronger cash positions.

It’s important to note that while a high cash per share ratio can be a positive sign, excessively hoarding cash without deploying it effectively can be detrimental to shareholder returns. Investors typically consider cash per share in conjunction with other financial metrics and factors, such as earnings, debt levels, and the company’s overall business strategy, to make informed investment decisions.

In summary, cash per share is a fundamental metric that provides insights into a company’s financial strength, liquidity, and ability to weather economic challenges. It plays a crucial role in evaluating a company’s financial health and investment potential.

To give a specific example, if a company goes out of business today, and it’s stock is debt free and selling for less than the cash per share, even if all its real estate, machinery, inventory, and everything else is worthless, the shareholder would be guaranteed to make money.

You may wonder if you can still buy stocks selling below cash. Here is one example.

Origin Materials (ORGN), with a market cap of $202.4 million, is trading at 93% of the cash per share.

Origin Materials, Inc., founded in 2008 and headquartered in West Sacramento, California, is a company dedicated to the development and commercialization of sustainable materials and chemicals.

Their primary focus revolves around producing carbon-negative materials and chemicals using renewable feedstocks sourced from non-food biomass, such as wood and agricultural residues.

By leveraging innovative technologies, Origin Materials aims to create products with a net-negative carbon footprint, meaning they remove more carbon from the atmosphere than is emitted during their production. The company collaborates with various partners, including major consumer brands and chemical companies, to incorporate their sustainable materials into a wide array of products.

Origin Materials’ mission centers on environmental sustainability, offering eco-friendly alternatives to conventional materials and contributing to the reduction of industries’ environmental impact.

The stock has a reasonable price to earnings ratio of 7.69, and is selling at 53% of book value.

If you are looking for a stock with a larger market cap, and if you think the market for commercial real estate has bottomed out, Equity Commonwealth (EQC) is a real estate investment trust with a market cap of $2.07 billion. The stock is selling at 96% of its cash per share.

This REIT invests in commercial office properties and is based in Chicago.

The company is debt free, trades at 33.4 times earnings, and is trading at 92% of book value.

If you are looking for very high risk, ClearOne (CLRO) is a penny stock with a market cap of $19.57 million.

ClearOne, Inc. is a communication solutions company headquartered in Salt Lake City, Utah, USA, with a history dating back to its founding in 1983. Specializing in audio and visual collaboration technologies, ClearOne has established itself as a prominent player in the industry.

The company’s core focus revolves around providing cutting-edge solutions designed to enhance communication and collaboration in diverse professional settings.

ClearOne offers a comprehensive suite of products and services tailored for improving communication quality, whether in corporate conference rooms, educational institutions, huddle spaces, or remote work environments. This includes audio conferencing solutions, video conferencing systems, collaboration software, professional audio-visual integration capabilities, and unified communications integration.

ClearOne has earned recognition for its patented technologies in echo cancellation, noise reduction, and audio processing, all contributing to the enhancement of audio quality.

Their mission is to simplify and elevate communication experiences for businesses, educational institutions, and government organizations, fostering productivity and seamless interaction.

The company has no long term debt, a very low P/E ratio less than 2, a decent price sales ratio of 0.98, and sells for 45% of book value.

Please note that while a low price-to-cash ratio may indicate good value, it should not be the sole factor considered in investment decisions. Conducting thorough research and due diligence, evaluating the company’s fundamentals, assessing its competitive position, and considering other financial metrics are essential to make solid investment choices.

Disclosure: Author didn’t own any of the above at the time the article was written. These stocks are very low cap and should be considered extremely speculative.

Top Debt Free Stocks Selling Below Cash per Share

Stocks selling below cash per share with no debt

by Fred Fuld III

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.

CompanySymbolMarket Cap
Wheels Up Experience Inc.UP470.27M
Atea Pharmaceuticals, Inc.AVIR650.02M
Bright Health Group, Inc.BHG1.03B
ContextLogic Inc.WISH919.01M
Ideanomics, Inc.IDEX304.08M

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.

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Stocks Selling for Less than Cash per Share

by Fred Fuld III

During the last six months, the stock market has taken a tumble, with the S&P 500 down almost 20% year-to-date.

Some investors and traders are now looking for bargains, hoping for a short term or even a long term bounce.

So how do you go about choosing a stock to buy in these volatile times? One strategy is to look for stocks that are not only selling below their book value, but also below their cash per share, especially if the company has low or no debt.

The cash per share is the amount of money that would be distributed for each share if the company went out of business today. In other words, if all the other company’s assets were totally worthless, how much would shareholders receive for each share, just from the cash in the bank the company has.

So if you can buy the stock for less than the cash per share, you should be getting a fairly good deal, not counting other factors.

If the company is also profitable, that is another benefit.

The following are four stocks with have low or no debt, are trading below the cash per share, and are profitable with price to earnings ratios below 32. As a matter of fact, three of the companies have P/E ratios below 15. All of the following are low cap or extremely low cap, so should be considered very, very speculative.

Atea Pharmaceuticals, Inc. (AVIR), with a market cap of $577.00 million,  is a biopharmaceutical company, which is involved in the development of antiviral therapeutics for patients suffering from viral infections. The stock has a reasonable P/E of 14.02, debt amounting to 2.88 million, and is currently selling for 17% below its cash per share.

Rubicon Technology, Inc. (RBCN) is an Illinois based company, involved in the production of monocrystalline sapphire for applications in optical and industrial systems. It has a market cap of $22.61 million. The P/E ratio is 30.63 and the company has no debt. It is selling for 15% below cash.

Sesen Bio, Inc. (SESN), based in Cambridge, Massachusetts, develops  targeted fusion protein therapeutics for the treatment patients with cancer.  The market cap is $163.72 million and the P/E is 3.23. The company only has $100,000 in debt.  The stock is selling at 4% below cash.

SunLink Health Systems, Inc. (SSY) is a provider of healthcare products and services, and is based in Atlanta, Georgia. It has an extremely low, and therefore extremely speculative, market cap of only $7 million. The P/E is 1.47  and the amount of debt is $1.31 million. The stock is selling for 1% below cash.

As previously mentioned, all these stocks should be considered extremely speculative. Remember, often stocks sell for a very low price for a reason.

Disclosure: Author didn’t own any of the above at the time the article was written. No investment recommendations are expressed or implied. 

Debt Free Stocks Below Cash per Share & Paying Dividends

by Fred Fuld III

It may be hard to believe that with so many stocks selling at recently very high levels, that there are actually stocks that not only sell below book value but also sell below cash per share. In addition, some of these stocks have little or no debt. Plus a few of these even pay dividends.

What selling below cash means is that if the company were to go out of business today, assuming the inventory, buildings, real estate, machinery, patents, and other assets were totally worthless, there would still be enough cash to distribute to all shareholders at an amount higher than the current stock price.

Here is a list of debt free stocks, selling below cash per share, and all have been paying dividends. .

Company Symbol Mkt Cap Yield Business
DallasNews DALN 35M 9.84% Publishing
Communications Systems JCS 25M 1.94% Tech
Eneti NETI 261M 0.59% Shipping
Retail Value RVI 66M 19.08% REIT

Just remember, these stocks are selling at a low price and have very low market caps for a reason, and are extremely speculative. In addition, high dividend payouts can be a red flag, and companies can stop paying dividends at any time.

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.

 

Stocks Selling Below Cash per Share

by Fred Fuld III

It may be hard to believe that with so many stocks selling a nosebleed levels, especially the meme stocks, that there are actually stocks that not only sell below book value but also sell below cash per share. In addition, these stocks have little or no debt.

What this means is that if the company were to go out of business today, assuming the buildings, real estate, machinery, patents, and other assets were totally worthless, there would still be enough cash to distribute to all shareholders at an amount higher than the current stock price.

Here are a couple stocks that sell below cash per share, have no or almost no debt and have a price to earnings ratio of less than 20.

Digital Ally (DGLY) has a market cap of $67.5  million and trades at 2.83 times earnings. The company, which makes and markets advanced video recording products, recently reported that second quarter earnings increased by 44% over the same quarter last year.

Voyager Therapeutics (VYGR) has a market cap of $107.4 million and a P/E ratio of 6.17. It is a biotech company that focuses on the development of treatments for patients suffering from severe neurological diseases.

Just remember, the stocks are selling at a low price and have low market caps for a reason, and are speculative.

 

Disclosure: Author didn’t own any of the above at the time the article was written.

 

Top Tax Selling Stocks Selling Below Cash per Share

by Fred Fuld III

A tax selling stock is a stock that is currently selling for a low price but was trading at much higher levels earlier in the year.

What is Tax Harvesting?

As the year-end approaches, many investors use the strategy called tax harvesting , which is selling stocks the have tanked to offset any gains that may have been established sometime during the year.

With strong selling, the price of stocks that have had big drops tends to fall far more than what would normally take place during the rest of the year.

So traders and investors are on the lookout for stocks that are heavily hit, hoping for a little (or big) bounce in January, once the tax selling is over.

What is Cash per Share?

But if you can find a stock that is selling below cash per share, you have a double bonus. The cash per share is the amount of cash the company has divided by the number of shares.

So if you are looking for these types of stocks, see below for a selection of some that have dropped by over 50% year-to-date. Most have low market capitalizations so they should be considered speculative. However, all of these stocks are selling below cash per share.

What is the Price to Book Ratio?

In addition, they all have a price to book ratio of less than one. The Price toBook ratio, in simple terms, is what each share would be worth if the company went out of business today and all assets sold off. The lower the ratio, the better. And if the number is less than one, it means that each share is worth more than the assets.

Here is the list. Dropped more than 50% this year, selling below cash per share, low priced to book ratio, and a price to sales ratio of less than one. All are United States based companies.

List of Tax Selling Stocks

Acorda Therapeutics, Inc. ACOR
Peabody Energy Corporation BTU
Cumulus Media Inc. CMLS
Express, Inc. EXPR
Francesca’s Holdings Corporation FRAN
Hallmark Financial Services, Inc. HALL
KLX Energy Services Holdings, Inc. KLXE
Nine Energy Service, Inc. NINE
PBF Energy Inc. PBF
Steel Connect, Inc. STCN
United Insurance Holdings Corp. UIHC

Just remember, these stocks may be trading at a very low price for a reason. Happy investing.