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 part I of an article titled "5 Stocks Trading Below Net Cash" on August 18, part II on August 19, part III on August 26 and part IV on August 27. Here is a look at five additional companies that trade below the net cash level currently:
1. Kingtone Wirelessinfo Solution Holding (NASDAQ:KONE) is a China-based developer and provider of mobile enterprise solutions. The company's products, known as mobile enterprise solutions, extend a company's or enterprise's information technology systems to include mobile participants. The company develops and implements mobile enterprise solutions for customers in a broad variety of sectors and industries, to improve efficiencies by enabling information management in wireless environments. At the core of its many diverse packaged solutions is proprietary middleware that enables wireless interactivity across many protocols, devices and platforms.
The company reported the first six months of fiscal year 2012 financial results on June 28 with the following highlights:
|Net loss||$5.2 million|
|Net cash||$7.4 million|
|Shares outstanding||14.1 million|
|Net cash per share||$0.52|
Based on the results of the first six months of fiscal year 2012 and lower anticipated sales for the second half of fiscal year 2012, in light of increased competition, price pressure and continuing negotiations for new contracts that were expected to be signed earlier in the year, the company is revising its previously released guidance for fiscal year 2012. The company now expects revenues in the range between $5 million and $6 million and net loss in the range between $8 million and $10 million.
The stock is currently trading at 46% discount to its net cash per share value. I am not expecting the company to be profitable for the full-year 2012.
2. Mecox Lane Limited (NASDAQ:MCOX) operates one of China's leading online platforms for apparel and accessories as measured by revenues in 2011. The company offers a wide selection of fashion products through its m18.com e-commerce website and physical store network. Product offerings include apparel and accessories, home products, beauty and healthcare products and other products, under the company's own proprietary brands, such as Euromoda and Rampage, as well as other selected third-party brands, including established international and Chinese brands in addition to independent and emerging brands.
The company reported the second-quarter financial results on August 14 with the following highlights:
|Net loss||$4.9 million|
|Net Cash||$51.9 million|
|Shares outstanding (NYSE:ADS)||57.9 million|
|Net cash per share||$0.90|
The company gave the following outlook on August 14:
We will continue to place emphasis on improving our operations and achieving positive operating cash flow, although we expect our operating cash flow to be negative for FY2012.
The stock is currently trading at 14% 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. Nabi Biopharmaceuticals (NASDAQ:NABI) is a biopharmaceutical company that has focused on the development of vaccines addressing unmet medical needs, including nicotine addiction. Its sole product currently in development is NicVAX (Nicotine Conjugate Vaccine), an innovative and proprietary investigational vaccine for the treatment of nicotine addiction and prevention of smoking relapse based on patented technology.
The company reported the second-quarter financial results on August 9 with the following highlights:
|Net loss||$2.7 million|
|Net Cash||$92.6 million|
|Shares outstanding||42.7 million|
|Net cash per share||$2.17|
On April 23, 2012 Nabi Biopharmaceuticals announced plans to merge with Biota Holdings Limited (ASX:BTA), a Melbourne, Australia company. The execution of the merger implementation agreement will form a combined company to be named Biota Pharmaceuticals. Biota Pharmaceuticals will be listed on NASDAQ and headquartered in the United States.
A special meeting of Nabi's shareholders is scheduled to take place on September 24, 2012 to vote on the merger deal.
The stock is currently trading at 26% 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. Metalink (OTCQB:MTLK) markets and sells DSL chipsets used by manufacturers of telecommunications equipment. The company's DSL chipsets enable the digital transmission of voice, video and data over copper wire communications lines at speeds that are up to 2,000 times faster than transmission rates provided by conventional analog modems.
The company reported the second-quarter financial results on July 30 with the following highlights:
|Net income||$0.1 million|
|Net Cash||$4.7 million|
|Shares outstanding||2.7 million|
|Net cash per share||$1.74|
The company wrote the following at its 2011 annual report:
We sold our WLAN business to Lantiq in February 2010. Since then, our plan of operation is (1) to continue the marketing and sale of our DSL products, which business is described below, and (2) to explore and consider strategic alternatives relating to our remaining DSL business as well as to other investments and opportunities, including a possible business combination or other strategic transaction with a domestic or foreign, private or public operating entity or a "going private" transaction, including with any of our affiliates.
The stock is currently trading at 56% 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. O2Micro (NASDAQ:OIIM) develops and markets innovative power management and e-commerce components for the computer, consumer, industrial, and communications markets. Products include Intelligent Lighting, Battery Management, and Power Management.
O2Micro International maintains an extensive portfolio of intellectual property with 20,690 patent claims granted, and over 21,000 more pending. The company maintains offices worldwide.
The company reported the second-quarter financial results on August 1 with the following highlights:
|Net loss||$11.3 million|
|Net Cash||$119.5 million|
|Shares outstanding||31.6 million|
|Net cash per share||$3.83|
Sterling Du, Chairman and CEO, commented on August 1:
"In spite of the macro-economic setbacks in the quarter, we continue to move forward confidently and take the right steps to strengthen our business and enhance shareholder value. We are especially enthusiastic about new key customer program ramps that we anticipate will support growth beginning later this year and continuing into calendar year 2013."
The stock is currently trading at 7% 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.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in OTCQB:MTLK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.