Three Stocks Selling Below Cash With Little Debt

If you are looking for a stock that has almost no downside, you can't beat a stock that is trading at a price below its cash per share, and on top of that, has little or no debt. WallStreetNewsNetwork.com has just updated their list of stocks selling below cash and has added a column which shows the amount a debt that the company has. Surprisingly, there are about a half a dozen with no debt at all and several more with relatively low debt.

For example, TradeStation Group Inc. (TRAD), an online stock brokerage company, has about $16 in cash, yet the stock sells for less than $7 per share. Not only that, the stock is debt free. The company announced last month that its daily trading volume rose 62 percent in October. The stock has a P/E of 8 and a PEG of 0.42.

Another 'below cash' stock is Health Net Inc. (HNT), the managed health care company. The company has over $20 per share in cash and the stock sells for less than $9 per share. In addition, the company only has $645 million in debt. The company just announced that Jonathan H. Scheff has returned as chief medical officer. The stock has a P/E of 5 and a PEG of 0.48.

CIENA Corp. (CIEN), the network hardware and software company, sells for less than $7 per share but has cash per share of over $11. It has about $800 million in debt, and its earnings call is scheduled for Thursday, December 11. The stock has a P/E of 7 and a PEG of 0.37.

For a downloadable Excel database of cheap stocks, which can be sorted and changed, go to WallStreetNewsNetwork.com to see the Stocks Selling Below Cash with No or Low Debt.

Comments

[Phiota:]

The thing with TRAD is that most of that cash I think belongs to it's customers (its holding it for them) since it is an online stock brokerage. If I am wrong let me know.

2008 Dec 02 07:02 AM

[Dan Jacome:]

nice finds - but you fail to address the uncertainty in the business models of these companies and thus, WHY they might be trading @ cash

2008 Dec 02 12:31 PM

[Dr.Jackpot:]

You said Health Net (HNT) had a PE of 5 but when I went to the data list it showed a PE over 27 !!!! and evidently no dividend.

2008 Dec 02 01:06 PM

[secmaven:]

Let's hope they have their cash in US Treasuries along with everyone else!

2008 Dec 02 01:49 PM

[Dan Jacome:]

Jackpot, HNT trades @ just under 5x forward estimates, please re check your source

2008 Dec 02 03:30 PM