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I screened with Finviz for companies that trade with a Price/Cash ratio of less than 1 and checked if the companies had any debt. I then calculated the net cash (cash - debt). Here is a look at five companies that trade below the net cash level currently:

1. China TechFaith Wireless Communication Technology (NASDAQ:CNTF) has three primary businesses. Under the TechFaith umbrella, the company is a leading global mobile solutions provider for the global mobile handsets market (previously called the ODP (Original Developed Product) business). Under its TecFace brand, the company is a leading developer of specialized mobile phones for differentiated market segments, including the rapidly growing smartphone market targeting wireless mobile phone network operators and end users; the company also serves sports enthusiasts with a tailored line under the Jungle brand and the teen market under licensed brands. Under the company's 17VEE brand, the company has built a leading intellectual property based motion gaming business ranging from Bluetooth-enabled motion gaming controllers and software to a planned proprietary set-top motion game box.

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Financials

The company reported the second-quarter financial results on August 16 with the following highlights:

Revenue$32.4 million
Net loss$0.7 million
Cash$252 million
Debt$5.6 million
Net cash$246.4 million
Shares outstanding (ADS)52.9 million
Net cash per share$4.66

Outlook

TechFaith currently expects total revenue for the third quarter of 2012 to be in the range of $30.0 million to $35.0 million.

My analysis

I am expecting the stock to build a base here at $1 level. The stock is currently trading at a significant discount to its net cash $4.66 per share. I hold a long position in the stock currently.

2. Actions Semiconductor (NASDAQ:ACTS) is one of China's leading fabless semiconductor companies that provides comprehensive portable multimedia and mobile internet system-on-a-chip (SoC) solutions for portable consumer electronics. Actions Semiconductor products include SoCs, firmware, software, solution development kits, as well as detailed specifications of other required components. Actions Semiconductor also provides total product and technology solutions that allow customers to quickly introduce new portable consumer electronics to the mass market in a cost effective way. The company is headquartered in Zhuhai, China, with offices in Beijing, Shanghai, and Shenzhen.

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Financials

The company reported the second-quarter financial results on August 7 with the following highlights:

Revenue$12.6 million
Net loss$0.56 million
Cash$207.7 million
Debt$12 million
Net cash$195.7 million
Shares outstanding69 million
Net cash per share$2.84

Outlook

For the third quarter of fiscal year 2012 ending September 30, 2012, Actions Semiconductor estimates revenue in the range of $15.5 to $16.5 million and gross margin of approximately 37%.

My analysis

The stock has been trading in a very tight range since the beginning of the year. The outlook for the third quarter is positive and indicates a 25% increase in revenue compared to the second quarter. The stock is currently trading at a significant discount to its net cash of $2.84 per share. I hold a long position in the stock currently.

3. UTStarcom (NASDAQ:UTSI) is a leading provider of interactive, IP-based network solutions in iDTV, IPTV, Internet TV and Broadband for cable and telecom operators. The company sells its solutions to operators in both emerging and established telecommunications and cable markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks.

UTStarcom was founded in 1991 and listed on the Nasdaq in 2000. With a new management team in 2011, the company deployed a revamped growth strategy that concentrates on providing media operation support services through its Video Service Cloud platform. UTStarcom has its operational headquarters in Beijing, China and research and development operations in China and India.

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Financials

The company reported the second-quarter financial results on August 13 with the following highlights:

Revenue$56.5 million
Net loss$1.8 million
Cash$277.7 million
Debt$0 million
Net Cash$277.7 million
Shares outstanding149.6 million
Net cash per share$1.86

Outlook

The divestiture of the IPTV business is expected to eliminate approximately $17.0 million in annual operating expenses, will remove a portion of the business that has rates of return that are lower than those generated by other parts of the company, and will leave the company with higher margin business lines. Based on current market conditions and assuming the IPTV transaction closes at the end of August as expected, the company expects continued healthy revenue growth within its remaining businesses, with average gross margins expanding to over 35% and break-even operational cash flow in 2012.

My analysis

I am not expecting the stock to drop below $1 level. The company has net cash of $1.86 per share. I hold a long position in the stock currently.

4. Biostar Pharmaceuticals (NASDAQ:BSPM) through its wholly-owned subsidiary and controlled affiliate in China, develops, manufactures and markets pharmaceutical and health supplement products for a variety of diseases and conditions. The company's most popular product is its Xin Aoxing Oleanolic Acid Capsule, an over-the-counter (OTC) medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population.

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Financials

The company reported the second-quarter financial results on August 14 with the following highlights:

Revenue$8.2 million
Net loss$9.4 million
Cash$18.7 million
Debt$0
Net cash$18.7 million
Shares outstanding9.4 million
Net cash per share$1.99

Outlook

Ronghua Wang, Biostar's Chief Executive Officer and Chairman commented:

"In late July, we received the "green light" approval from Xianyang State Food and Drug Administration (SFDA) authorities to restart sales of gel capsule products. Due to the steps we have taken, we expect sales for 2012 third quarter to significantly improve as compared to the 2012 second quarter."

My analysis

The stock is currently trading below its net cash of $1.99 per share. I am expecting the company to be profitable again later this year after the green light is received from SFDA to restart sales of gel capsule products. I hold a long position in the stock currently.

5. SkyPeople Fruit Juice (NASDAQ:SPU) is engaged in the production and sale of fruit juice concentrates, fruit juice beverages, and other fruit related products in the PRC and overseas markets. Its fruit juice concentrates are sold to domestic customers and exported directly or via distributors. Fruit juice concentrates are used as a basic ingredient component in the food industry. Its brands, "Hedetang" and "SkyPeople", which are registered trademarks in the PRC, are positioned as high quality, healthy and nutritious end-use juice beverages.

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Financials

The company reported the second-quarter financial results on August 13 with the following highlights:

Revenue$12.8 million
Net income$2.4 million
Cash$87.7 million
Debt$11.6 million
Net cash$76.1 million
Shares outstanding26.7 million
Net cash per share$2.85

My analysis

The stock is trading at a significant discount to its net cash of $2.85 per share. The company is currently profitable and I would expect it to be profitable also in the future. I am holding a long position in the stock currently.

Source: 5 Stocks Trading Below Net Cash