A Cash-Rich $10 Tech Stock To Pick Up Now

 |  About: Inteliquent, Inc. (IQNT)
by: Bret Jensen

Although value is much harder to find in the market after this substantial rally, there is still some to be found for investors willing to look. Here is one small-cap equity with substantial cash holdings, low valuations and that is priced significantly under analysts' price targets to consider.

Inteliquent (NASDAQ:IQNT) - "Inteliquent, Inc. provides intelligent networking to solve interconnection and interoperability issues on a global scale. It offers voice, IP Transit, Ethernet, and hosted service solutions to carriers, service providers, and content management firms based in approximately 80 countries and 6 continents." (Business Description from Yahoo Finance)

6 reasons IQNT has significant value at just over $10 a share:

  • The company has a solid balance sheet with over $2.50 a share in net cash on its books.
  • The median analysts' price target for the five analysts that cover the stock is $15 a share, about 40% over the current share price.
  • Revenue is showing good growth. It booked $200mm in sales in FY2010, should come in around $265mm in revenue in FY2011 and analysts project over $285mm in FY2012.
  • The stock is priced just above its long-term technical support (See Chart - click to enlarge)

Click to enlarge

  • It has a low five-year projected PEG (.94) and under 11 times forward earnings.
  • The company is selling at under 6 times operating cash flow and just 33% over book value.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in IQNT over the next 72 hours.