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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). I wrote the part I of an article titled "5 Stocks Trading Below Net Cash" on August 18 and the part II on August 19. Here is a look at five additional companies that trade below the net cash level currently:

1. Xueda Education Group (NYSE:XUE) is a leading national provider of tutoring services for primary and secondary school students in China with a focus on offering personalized tutoring services. Since opening its first learning center in 2004, Xueda has organically built an extensive tutoring service network comprised of 383 learning centers and 14,275 full-time teaching professionals, serving customers located in 73 economically developed cities across 28 provinces and municipalities as of June 30, 2012.

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Financials

The company reported the second-quarter financial results on August 15 with the following highlights:

Revenue$96.9 million
Net income$13.0 million
Cash$224.6 million
Debt$0
Net Cash$224.6 million
Shares outstanding66.5 million
Net cash per share$3.38

Outlook

  • The company currently expects its net revenue for the third quarter of 2012 to be in the estimated range of $65.7 million to $68.3 million, an increase of approximately 27.5% to 32.5% from the same quarter of the previous year.
  • The company raises its expectation of net revenue for the full year 2012 to the estimated range of $283.0 million to $293.0 million, an increase of approximately 27.5% to 32.0% from the full year 2011, compared to its prior expectation of $272.0 million to $282.0 million.

My analysis

The stock is currently trading at 11% discount to its net cash per share value. I would recommend buying the shares below the net cash level. I am expecting the company to be profitable for the full-year 2012.

2. The9 Limited (NASDAQ:NCTY) is an online game developer and operator. The9 developed and operates, directly or through its affiliates, its proprietary online games and web and social games including Shen Xian Zhuan, Re Xue Wu Shuang, Winning Basketball, Winning Goal and Q Jiang San Guo, in mainland China. It has also obtained exclusive licenses to operate other games in mainland China, such as Planetside 2. In addition, The9 is developing various proprietary games, including FireFall and other online games and web and social games. In 2010, The9 established its Mobile Internet Unit to focus on mobile internet business.

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Financials

The company reported the second-quarter financial results on August 23 with the following highlights:

Revenue$8.6 million
Net loss$18.6 million
Cash$124.8 million
Debt$0
Net Cash$124.8 million
Shares outstanding24.5 million
Net cash per share$5.09

Outlook

Jun Zhu, Chairman and Chief Executive Officer of The9 commented on August 23:

"We have a very high level of confidence in the two Massively Multiplayer Online shooting games in our pipeline. Firefall just released the biggest patch update ever in early August and received highly positive feedback from gamers. Firefall will be commercialized in the U.S. very soon and Red 5 will release more beta invites in the U.S. to attract more gamers to join Firefall. Red 5 has also set up a subsidiary in Ireland in May 2012 to prepare for the launch in Europe. Planetside 2 is another well-known game for which we obtained the license in China. Planetside 2 is already in closed beta in the U.S. We are now localizing the game in China and plan to start the internal technical test in China by the end of this year. We believe these two robust games in our pipeline will significantly strengthen our capability in achieving further growth."

My analysis

The stock is currently trading at 8% discount to its net cash per share value. I would recommend buying the shares below the net cash level. I am not expecting the company to be profitable for the full-year 2012.

3. HKN, Inc. (HKN) is an independent energy company engaged in the development of a well-balanced portfolio of assets in the energy industry and in the active management of its energy-based investments.

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Financials

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

Revenue$0
Net loss$0.6 million
Cash$40.6 million
Debt$0
Net cash$40.6 million
Shares outstanding18.1 million
Net cash per share$2.24

My analysis

The stock is currently trading at 1% discount to its net cash per share value. I would recommend buying the shares below the net cash level. I am not expecting the company to be profitable for the full-year 2012.

4. CNinsure (NASDAQ:CISG) is a leading independent intermediary company operating in China. CNinsure's distribution network reaches many of China's most economically developed regions and affluent cities. The company distributes a wide variety of property and casualty and life insurance products underwritten by domestic and foreign insurance companies operating in China, and provides insurance claims adjusting as well as other insurance-related services.

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Financials

The company reported the second-quarter financial results on August 21 with the following highlights:

Revenue$64.5 million
Net income$5.2 million
Cash$391.0 million
Debt$0
Net cash$391.0 million
Shares outstanding (NYSE:ADS)50 million
Net cash per share$7.82

Outlook

CNinsure expects its total net revenues to remain approximately flat for the third quarter of 2012 compared to the corresponding period in 2011.

My analysis

The stock is currently trading at 29% discount to its net cash per share value. I would recommend buying the shares below the net cash level. I am expecting the company to be profitable for the full-year 2012.

5. Adventrx Pharmaceuticals (ANX) is a biopharmaceutical company developing proprietary product candidates to treat various diseases and conditions. The company's lead product candidate, ANX-188, has potential to reduce ischemic tissue injury and end-organ damage by restoring microvascular function which is compromised in a wide range of serious and life-threatening diseases and conditions. The company initially is developing ANX-188 as a treatment for complications arising from sickle cell disease.

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Financials

The company reported the second-quarter financial results on August 6 with the following highlights:

Revenue$0
Net loss$4.2 million
Cash$43.1 million
Debt$0
Net cash$43.1 million
Shares outstanding47.7 million
Net cash per share$0.90

Upcoming milestones

Brian M. Culley, Chief Executive Officer of Adventrx commented on August 6:

"With the advice of our Regulatory Advisory Board, we are working to finalize the protocol for our phase 3 study of ANX-188 in sickle cell disease. Additionally, our manufacturing partner, Pierre Fabre, has begun manufacturing the active ingredient for use in the study."

"To maximize the potential of ANX-188 to protect tissue from ischemic injury and reduce end-organ damage, we have been evaluating ANX-188 in other indicationsas part of our comprehensive development program. Later this year, we expect to announce our plans for ANX-188 in an indication outside of sickle cell disease. We have been working with a leading university on the protocol for a Phase 2 study that could begin in the first half of 2013 and read-out approximately 18 months thereafter."

Analyst opinion

Vista Partners has a $3.5 price target for the stock. The analyst report was updated on July 12.

My analysis

The stock is currently trading at 20% discount to its net cash per share value. I would recommend buying the shares below the net cash level. I am not expecting the company to be profitable for the full-year 2012.

Source: 5 Stocks Trading Below Net Cash - Part III