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Investors often get excited about stocks with high cash balances relative to market cap - it may signal undervalued conditions.

To construct this list of stocks we looked for companies with the following characteristics:
- Market cap above $300M
- Price to cash ratio below 3
- And experienced significant institutional inflows over the current quarter



We also created an equal weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.



Considering this information and your opinion about the markets, which of these stocks are you most bullish about?

1. QLT Inc. (NASDAQ:QLTI): Biotechnology Industry. Market cap of $432.48M. Price/cash ratio at 2.06 - which means cash makes up approximately 48.54% of the company's market cap. On a net basis, institutional investors purchased 2.6M shares - this is equivalent to 8.62% of the outstanding shares. The stock has had a couple of great days, gaining 13.75% over the last week.

2. Avis Budget Group, Inc. (NASDAQ:CAR):
Rental & Leasing Services Industry. Market cap of $1.89B. Price/cash ratio at 2.08 - which means cash makes up approximately 48.08% of the company's market cap. On a net basis, institutional investors purchased 5.6M shares - this is equivalent to 6.77% of the outstanding shares. The stock is a short squeeze candidate, with a short float at 16.37% (equivalent to 9.29 days of average volume). It's been a rough couple of days for the stock, losing 5.84% over the last week.

3. Live Nation Entertainment, Inc. (NYSE:LYV): General Entertainment Industry. Market cap of $1.99B. Price/cash ratio at 2.22 - which means cash makes up approximately 45.05% of the company's market cap. On a net basis, institutional investors purchased 6.3M shares - this is equivalent to 4.97% of the outstanding shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.05). The stock is a short squeeze candidate, with a short float at 6.05% (equivalent to 5.69 days of average volume). The stock has lost 26.89% over the last year.

4. FLY Leasing Limited (NYSE:FLY): Rental & Leasing Services Industry. Market cap of $365.66M. Price/cash ratio at 2.23 - which means cash makes up approximately 44.84% of the company's market cap. On a net basis, institutional investors purchased 1.6M shares - this is equivalent to 7.63% of the outstanding shares. The stock has gained 19.56% over the last year.

5. Federal-Mogul Corp. (NASDAQ:FDML)
: Auto Parts Industry. Market cap of $2.57B. Price/cash ratio at 2.32 - which means cash makes up approximately 43.1% of the company's market cap. On a net basis, institutional investors purchased 2.2M shares - this is equivalent to 9.32% of the outstanding shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.09). The stock has gained 37.3% over the last year.

6. Safeguard Scientifics, Inc. (NYSE:SFE): Business Services Industry. Market cap of $380.93M. Price/cash ratio at 2.5 - which means cash makes up approximately 40.0% of the company's market cap. On a net basis, institutional investors purchased 1.1M shares - this is equivalent to 5.72% of the outstanding shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.06).

7. Shanda Interactive Entertainment Ltd. (NASDAQ:SNDA): Multimedia & Graphics Software Industry. Market cap of $3.06B. Price/cash ratio at 2.54 - which means cash makes up approximately 39.37% of the company's market cap. On a net basis, institutional investors purchased 631.7K shares - this is equivalent to 3.37% of the outstanding shares. It's been a rough couple of days for the stock, losing 8.01% over the last week.

8. EchoStar Corp. (NASDAQ:SATS):
Communication Equipment Industry. Market cap of $2.91B. Price/cash ratio at 2.57 - which means cash makes up approximately 38.91% of the company's market cap. On a net basis, institutional investors purchased 1.2M shares - this is equivalent to 3.19% of the outstanding shares. After a solid performance over the last year, SATS has pulled back during recent sessions. The stock is -8.72% below its SMA20 and -8.04% below its SMA50, but remains 29.64% above its SMA200. The stock has gained 80.7% over the last year.

9. RTI International Metals, Inc. (NYSE:RTI): Industrial Metals & Minerals Industry. Market cap of $1.04B. Price/cash ratio at 2.62 - which means cash makes up approximately 38.17% of the company's market cap. On a net basis, institutional investors purchased 1.3M shares - this is equivalent to 4.38% of the outstanding shares. The stock is a short squeeze candidate, with a short float at 12.73% (equivalent to 8.42 days of average volume).

10. Tutor Perini Corporation (NYSE:TPC): Heavy Construction Industry. Market cap of $1.24B. Price/cash ratio at 2.64 - which means cash makes up approximately 37.88% of the company's market cap. On a net basis, institutional investors purchased 2.9M shares - this is equivalent to 12.01% of the outstanding shares. The stock has gained 14.55% over the last year.

11. Micromet, Inc. (NASDAQ:MITI): Biotechnology Industry. Market cap of $607.39M. Price/cash ratio at 2.75 - which means cash makes up approximately 36.36% of the company's market cap. On a net basis, institutional investors purchased 8.4M shares - this is equivalent to 9.65% of the outstanding shares. The stock is a short squeeze candidate, with a short float at 5.77% (equivalent to 6.82 days of average volume). The stock has had a good month, gaining 17.05%.

12. ViroPharma Inc. (VPHM): Biotechnology Industry. Market cap of $1.41B. Price/cash ratio at 2.78 - which means cash makes up approximately 35.97% of the company's market cap. On a net basis, institutional investors purchased 3.0M shares - this is equivalent to 4.25% of the outstanding shares. The stock is a short squeeze candidate, with a short float at 9.94% (equivalent to 7.35 days of average volume).

13. Veeco Instruments Inc. (NASDAQ:VECO): Semiconductor Equipment & Materials Industry. Market cap of $2.06B. Price/cash ratio at 2.93 - which means cash makes up approximately 34.13% of the company's market cap. On a net basis, institutional investors purchased 3.0M shares - this is equivalent to 8.37% of the outstanding shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.45). The stock is a short squeeze candidate, with a short float at 29.22% (equivalent to 8.73 days of average volume). The stock has gained 10.24% over the last year.

14. Retail Ventures Inc. (NYSE:RVI):
Specialty Retail Industry. Market cap of $1.0B. Price/cash ratio at 2.94 - which means cash makes up approximately 34.01% of the company's market cap. On a net basis, institutional investors purchased 900.9K shares - this is equivalent to 3.95% of the outstanding shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.76). The stock is a short squeeze candidate, with a short float at 11.47% (equivalent to 7.23 days of average volume). The stock has had a good month, gaining 11.45%.

*Institutional flows sourced from Fidelity, other relevant sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Value Investing: 14 Stocks With Low P/C Ratios, Big Money Buying