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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 believe that stocks that trade below their net cash levels are potential takeover candidates or "going private" candidates. I wrote the part I of an article titled "5 Stocks Trading Below Net Cash" on August 18, the part II on August 19, the part III on August 26, the part IV on August 27, the part V on August 27, the part VI on August 28 and the part VII on September 2. In this article, I will feature one China-based company and four US-based companies. I chose these five companies because they have all reported the second quarter financial results already. Here is a look at the five additional companies that trade below the net cash level currently:

1. Acorn (NYSE:ATV) is a media and branding company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV airtime, and other direct sales platforms and a nationwide distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. Acorn's other direct sales platforms include catalogs, third-party bank channels, outbound telemarketing center and e-commerce websites. Acorn has built a proven track record of developing, promoting and selling proprietary-branded products, as well as products from established third parties.

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Financials

The company reported the second-quarter financial results on August 31 with the following highlights:

Revenue$46.1 million
Net loss$5.2 million
Cash$110.5 million
Debt$0
Net Cash$110.5 million
Shares outstanding [ADS]30 million
Net cash per share$3.68

Outlook

Due to lower-than-anticipated performance in the first half of 2012 and the overall macro-economic environment in China, the company is revising its guidance. The company now anticipates revenues between $260 million and $280 million and a net loss between $14 million and $16 million.

My analysis

The stock is currently trading at 23% discount to its net cash per share value. I am not expecting the company to be profitable for the full year 2012 based on the company's outlook. I believe the company could be profitable again in 2013 based on the company's past performance. I would be looking to be a buyer around $2 level.

2. Myrexis (OTCPK:MYRX) is a biopharmaceutical company headquartered in Salt Lake City, Utah, focused on identifying, evaluating and acquiring commercial-stage biopharmaceutical assets. Myrexis' goal is to build a commercial-stage biopharmaceutical company by acquiring one or more life sciences assets and optimizing their performance and profitability.


Financials

The company reported the results for its fiscal 2012 full-year (ended June 30, 2012) on September 13 with the following highlights:

Revenue

$0

Net loss

$31.2 million

Cash

$89.6 million

Debt

$0

Net Cash

$89.6 million

Shares outstanding

26.4 million

Net cash per share

$3.39

Outlook

In February 2012, the company announced that it had suspended development activity on all of its pre-clinical and clinical programs and retained Stifel Nicolaus Weisel, an investment banking firm, to assist in reviewing and evaluating a full range of strategic alternatives to enhance shareholder value. Thereafter, in March 2012, the company initiated an alignment of its resources involving a phased reduction in its workforce from approximately 59 employees to 10 currently.

Based on the company's evaluation of strategic alternatives, it determined to pursue the acquisition of one or more commercial-stage biopharmaceutical assets, with the goal of building a commercial-stage biopharmaceutical company by optimizing its performance and profitability. Integral to these efforts, on May 11, 2012, the company announced a change in management, including the appointment of Richard B. Brewer as President and Chief Executive Officer and David W. Gryska as Chief Operating Officer, collectively bringing an extensive track record of commercializing, acquiring and marketing pharmaceutical products throughout their careers. In addition, both Mr. Brewer and Mr. Gryska were appointed as members of the Board of Directors.

On August 15, 2012, the company announced the death of Richard B. Brewer, its President and Chief Executive Officer. The Board of Directors appointed David W. Gryska as the acting President and Chief Executive Officer while considering succession plans. In addition, the Board of Directors is further evaluating its strategic direction in light of this development and the company's progress to date in identifying attractive biopharmaceutical assets.

The company does not know if it will be successful in pursuing any strategic alternative or that any transaction will occur; however, the company is committed to pursuing a strategic direction that its Board of Directors believes is in the best interests of its shareholders. During this period, the company continues to actively pursue business development opportunities for each of its programs. However, the company has been unsuccessful to date in identifying and attracting third parties to whom it could out-license or sell these assets for further development.

My analysis

The stock is currently trading at a 30% discount to its net cash per share value. I am not expecting the company to be profitable for the full calendar year 2012.

3. Capstone Therapeutics (OTCQB:CAPS) is a biotechnology company committed to developing a pipeline of novel peptides and other molecules aimed at helping patients with under-served conditions.

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Financials

The company reported the second-quarter financial results on August 10 with the following highlights:

Revenue$0
Net loss$0.7 million
Cash$12.8 million
Debt$0
Net Cash$12.8 million
Shares outstanding40.9 million
Net cash per share$0.31

Outlook

The company has a guidance for 2012 full year cash burn of approximately $2.5 million, excluding JV contribution.

News

Capstone Therapeutics and LipimetiX, LLC, a privately-held biopharmaceutical company, announced on August 3 that they have entered into a joint venture to develop a class of drugs targeted for indications related to lowering blood cholesterol levels. The joint venture will develop a family of Apo E mimetic peptides licensed from The UAB Research Foundation. The University of Alabama at Birmingham is a leading research institution in this field.

Under terms of the JV agreement, Capstone will contribute $6 million: $1 million for voting common ownership units representing 60% ownership in JV; and $5 million for non-voting preferred ownership units, which have preferential distribution rights.

My analysis

The stock is currently trading at 52% discount to its net cash per share value. I am not expecting the company to be profitable for the full-year 2012 based on the company's guidance.

4. Career Education Corporation's (NASDAQ:CECO) family of colleges, schools and universities offer high-quality education to a diverse student population of more than 75,000 students across the world in a variety of career-oriented disciplines through online, on-ground and hybrid learning program offerings. The more than 90 campuses that serve these students are located throughout the United States and in France, the United Kingdom and Monaco, and offer doctoral, master's, bachelor's and associate degrees and diploma and certificate programs.

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Financials

The company reported the second-quarter financial results on July 31 with the following highlights:

Revenue$369.0 million
Net loss$100.2 million
Cash$369.9 million
Debt$0
Net Cash$369.9 million
Shares outstanding66.0 million
Net cash per share$5.60

Outlook

Mike Graham - EVP and CFO commented during the second quarter earnings conference call:

Turning to an outlook, as you know as a matter of policy, we do not provide annual guidance. As you can see from the difficult marketing conditions we've faced, evidenced by our level of new student starts, and the commentary of many other comparable for-profit education firms in the last 10 days, inflection points we have assumed continue to move back causing our anticipated 2012 results, as Steve said, excluding the non-cash impairment charges, now to move into an operating loss level.

While visibility if the inflection point remains unclear, we do not right now anticipate a material improvement in our trend of new student starts as compared to the prior year adjusted for the timing of calendar changes in the third quarter of 2012. Our financial results versus our previously communicated range of 2012 ground school operating losses will also be impacted by the lower level of new student starts. Accordingly, our expectations for the ground schools versus last quarter's earnings release and conference call have fallen as well. Given the current market conditions, we will not provide any further milestones at this time.

Before we open the call for questions, let me quickly update you on the financial position as of June 30, 2012, the company had cash, cash equivalents, and short-term investments of $370 million. Our cash flow for operations for the three months ended June 30, 2012, was approximately a $1 million cash outflow. And capital expenditures were $8 million or 2.1% of revenues.

My analysis

The stock is currently trading at 44% discount to its net cash per share value. I am not expecting the company to be profitable for the full-year 2012. I believe the company could be profitable again in 2013 based on the company's past performance. I would be looking to be a buyer around $3 level.

5. Tegal Corporation (NASDAQ:TGAL) has been dedicated to the development and application of emerging technologies. For 40 years, Tegal's process and equipment know-how has been incorporated in devices fabricated by some of the world's leading semiconductor and MEMS companies, including Tegal's one-time parent, Motorola. Now entering its fifth decade, Tegal has committed its future to the CollabRx vision of "Informing Next Generation Healthcare".

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Financials

The company reported the first-quarter fiscal year 2013, which ended June 30, 2012, financial results on August 14 with the following highlights:

Revenue$0.03 million
Net loss$0.7 million
Cash$7.2 million
Debt$0
Net Cash$7.2 million
Shares outstanding1.7 million
Net cash per share$4.24

News

Subsequent to the end of Q1, FY 2013, Tegal announced the closing of a transaction to acquire CollabRx, a cloud-based genomic information company that enables physicians to take into account a tumor's genetic profile when considering targeted therapies in patient-specific cancer treatments. The Chief Executive Officers of the two constituent companies, Thomas Mika of Tegal and James Karis of CollabRx, plan to serve as co-CEOs of the combined, publicly traded company, with headquarters in San Francisco, CA.

My analysis

The stock is currently trading at 21% discount to its net cash per share value. I am not expecting the company to be profitable for the full-year 2012. There seems to be some chart support at $3 level which could be a good entry point for the stock.

Source: 5 Stocks Trading Below Net Cash - Part VIII