Many times, companies that are trading near cash value are expected to turn a loss during the near future. Not only does that provide a good buying opportunity for the long-term investor, but the stocks listed below are actually expected to turn a positive EPS over the next 12 months.
The following is a list of five stocks that have about half of their market cap in cash. Additionally, many have zero long-term debt:
|Company||Symbol||Market Cap||Recent Price||Cash/Share||Price/Cash Ratio|
|The9 Limited||NCTY||$376 million||$13.75||$7.54||1.82|
|Focus Media||FMCN||$987 million||$6.63||$2.90||2.29|
|Harvest Natural||HNR||$145 million||$3.48||$3.59||0.97|
|FreightCar America||RAIL||$174 million||$18.16||$10.93||1.66|
The9 Limited (NCTY)
The9 Limited is an online game operator and developer in China. The9 Ltd. has a market cap of $376 million; its shares were traded at around $13.75 with a P/E ratio of 7.1 and P/S ratio of 1.4. The dividend yield of The9 Ltd. stocks is 15.8%.
Focus Media (FMCN)
Focus Media operates the largest out-of-home advertising network in China using audiovisual plat-panel displays based on the number of locations and number of displays in its network. Focus Media Holding Ltd. has a market cap of $987 million; its shares were traded at around $6.63 with a P/E ratio of 4.7 and P/S ratio of 2.3.
Harvest Natural (HNR)
Harvest Natural Resources Inc. is an independent oil and gas exploration and development company with principal operations in Venezuela and Russia. Harvest Natural Resources Inc. has a market cap of $145 million; its shares were traded at around $3.48 with a P/E ratio of 17.5 and P/S ratio of 10.2
FreightCar America (RAIL)
FreightCar America Inc. manufactures railroad freight cars with particular expertise in coal-carrying railcars. In addition to coal cars, FreightCar America designs and builds flat cars, mill gondola cars, intermodal cars, coil steel cars, and motor vehicle carriers. FreightCar America Inc. has a market cap of $174 million; its shares were traded at around $18.16 with a P/E ratio of 11.7 and P/S ratio of 0.3. The dividend yield of FreightCar America Inc. stocks is 1.4%.
Administaff is a personnel management company that serves as a full-service human resources department for small and medium-sized businesses throughout the United States. Administaff Inc. has a market cap of $478 million; its shares were traded at around $22.37 with a P/E ratio of 12.4 and P/S ratio of 0.3. The dividend yield of Administaff Inc. stocks is 2.3%. Administaff Inc. had an annual average earning growth of 21.2% over the past 10 years.
Although many stocks have been knocked down near cash value for a reason, these companies have strong businesses and should turn a profit in 2009. As Ben Graham suggested, holding a basket of stocks such as these could help your portfolio achieve long-term success.