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.
| 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.
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