Two Stocks Trading Near Cash

During the last few months, investors have been looking for "can't go wrong" stocks, which are stocks trading close to or even less then the cash per share of the stocks. And if the stocks were debt free, it would be hard for the companies to go out of business unless they had an extremely high burn rate.

Those types of stocks were easy to find when the market was lower, but you can still find some of those bargains out there.

As an example, Wellcare Health (WCG), which sells for around $27 per share, has $24 per share in cash. This debt free managed care services for government-sponsored health care programs has a market cap of over a billion dollars and has a forward P/E of 11.7.

RealNetworks (RNWK) is a $450 million market cap company which trades for around 3.99 per share and has cash per share of 2.31. However, recent earnings have been negative for this digital services media company. At least they are debt free.

WallStreetNewsNetwork.com has come up with a downloadable Excel database of over ten stocks that trade near cash and are debt free, all of which have market caps over $250 million.

Disclosure: Author does not own any of the above.

Comments

[profitize:]

Here's a good lesson for everyone, even though Yahoo Finance shows $24/ share in cash for a total of 1b dollars the cash is restricted cash and cannot be used for corporate purposes. I'm a strong advocate of reporting cash every where like they do on the the 10q/k's Cash...and Restricted cash. It's just to misleading for the average investor.

Sep 23 07:48 AM

[Brian O'Fla...:]

there are no "can't go wrong" stocks in the market. But buying those at or near cash (net of debt, of course) is a good place to start. The key question is what are they going to do with the cash? Return it to shareholders or blow it on stupid acquisitions?

Sep 23 10:53 AM