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The Current ratio is a liquidity metric that measures the ability of a company to pay off its short-term obligations. The higher this metric is the more easily a company should be able to pay off these obligations. A ratio under one would indicate that the company is having potential liquidity issues. As well, if all the short-term obligations came due at once the company technically could not repay all of them. While a current ratio under one is nothing to brag about it doesn’t mean a company is heading toward bankruptcy either. Instead, it should be viewed as a red flag and an issue that deserves further attention and analysis.

We ran a screen for technology stocks that have strong liquidity (Current Ratio>6). From this narrowed pool we then screened for stocks have been bouncing near their 52-week lows.

1. Tessera Technologies, Inc. (TSRA)

Sector

Technology

Industry

Semiconductor Equipment & Materials

Market Cap

$632M

Beta

1.31

The company develops and licenses miniaturization technologies. The company has a Current Ratio of 19.34. TSRA is 1.48 % above its 52-week low. The short interest was 3.70% as of 08/31/2011.

2. Cree, Inc. (CREE)

Sector

Technology

Industry

Semiconductors

Market Cap

$3,183M

Beta

0.88


The company develops and manufactures semiconductor materials and electronic devices. The company has a Current Ratio of 11.70. CREE is 9.14% above its 52-week low. The short interest was 16.60% as of 08/31/2011.

3. FormFactor, Inc. (FORM)

Sector

Technology

Industry

Semiconductors

Market Cap

$326M

Beta

1.21

The company designs, develops, manufactures, sells and supports precision, high performance advanced semiconductor wafer probe cards. It has a Current Ratio of 10.66. FORM is 1.26 % above its 52-week low. The short interest was N/A as of 08/31/2011.

4. Volterra Semiconductor Corpora. (VLTR)

Sector

Technology

Industry

Semiconductors

Market Cap

$491M

Beta

1.40

The company sells proprietary analog and mixed-signal power management semiconductors. It has a Current Ratio of 8.91. VLTR is 7.91% above its 52-week low. The short interest was 6.70% as of 08/31/2011.

5. WebMD Health Corporation. (WBMD)

Sector

Technology

Industry

Health Information Services

Market Cap

$1,731M

Beta

0.81

The company provides health information services to a variety of different customers online. It has a Current Ratio of 8.25. WBMD is 0.85% above its 52-Week low. The short interest was 5.10% as of 08/31/2011.

6. AVX Corporation. (AVX)

Sector

Technology

Industry

Electronic Components

Market Cap

$1,888M

Beta

0.87


The company manufactures a line of passive electronic components and related items. It has a Current Ratio of 6.74. AVX is 1.83% above its 52-week low. The short interest was 1.40% as of 08/31/2011.

7. Monolithic Power Systems, Inc. (MPWR)

Sector

Technology

Industry

Semiconductors

Market Cap

$358M

Beta

1.21

The company sells proprietary advanced analog and mixed-signal semiconductors. It has a Current Ratio of 6.70. MPWR is 2.10% above its 52-week low. The short interest was 4.70% as of 08/31/2011.

8. Infosys Ltd. (INFY)

Sector

Technology

Industry

Information Technology Services

Market Cap

$26,859M

Beta

1.10

The company offers comprehensive end-to-end business solutions. It has a Current Ratio of 6.58. INFY is 1.93% above its 52-week low. The short interest was N/A as of 08/31/2011.

9. QLogic Corporation. (QLGC)

Sector

Technology

Industry

Data Storage

Market Cap

$1,356M

Beta

1.44

The company offers storage networking solutions and network infrastructure solutions. It has a Current Ratio of 6.50. QLGC is 6.70% above its 52-week low. The short interest was 5.40% as of 08/31/2011.

10. Texas Instruments, Inc. (TXN)

Sector

Technology

Industry

Semiconductors

Market Cap

$30,304M

Beta

1.08

The company develops and sells semiconductors, digital signal processors, and other electronic items. It has a Current Ratio of 6.20. TXN is 7.76% above its 52-week low. The short interest was 2.40% as of 08/31/2011.

We hope this list helps as investors do their own due diligence on technology firms.


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

Source: 10 Technology Companies Sitting On Cash While Bouncing Along 52-Week Lows