Nine Stocks Selling Under $3 a Share

The book value of a stock, in simple terms, is what a shareholder would get per share if all the assets of the company ere sold of, all the debts paid off, and the remaining cash distributed among all the shareholders. The ratio that is used is the Price to Book ratio. The lower the number, the better. It means that you are buying the companies net assets at a lower price. If the Price to Book is below 1, it means that the shares are selling for less than the the net worth of the company.

Here are some stocks with a Price to Book below one and market caps over $500 million:

• Rite Aid Corporation (RAD) is selling at $1.32. It has a market cap of $1.1 billion and a Price to Book of 0.88.
• Qimonda AG (QI) is priced at $1.72. It has a market cap of $588.2 million and a Price to Book of 0.20.
• Sanmina-SCI Corporation (SANM) trades at $1.74. It has a market cap of $922.3 million and a Price to Book of 0.78.
• 3Com Corporation (COMS) trades at $1.87. It has a market cap of $757.9 million and a Price to Book of 0.76.
• Graphic Packaging Holding Company (GPK) trades at $2.25. It has a market cap of $768.7 million and a Price to Book of 0.86.
• United Microelectronics Corp (UMC) trades at $2.51. It has a market cap of $6.3 billion and a Price to Book of 0.95.
• Semiconductor Manufacturing International (SMI) trades at $2.68, has a market cap of $996.6 million and a Price to Book of 0.36.
• Blockbuster Inc. (BBI) trades at $2.78. It has a market cap of $548.4 million and a Price to Book of 0.96.
• Coeur d'Alene Mines Corporation (CDE) trades at $2.81. It has a market cap of $1.5 billion and a Price to Book of 0.92.

Disclosure: None

Comments

[rexquondamr...:]

This is an article? I don't think so.

2008 Aug 03 10:08 AM

[GAMESIX:]

Book Value can be very deceiving in measuring value. It includes intangible assets(like goodwill) that are worthless were the company to go under.

Try tangible net worth and see how some of the above then appear.

Once upon a time I held shares in an outfit known as Boston Chicken aka Boston Market. It's price to book was .10 before it went chapter 11.

The shareholders got nada.

Things are not always what they appear to be.

2008 Aug 03 02:07 PM

[singh:]

NAPS missed by you how come? it's buyout target trading below cash in my own opinion

2008 Aug 03 02:32 PM

[User 69935:]

... down a dollar, but could go up three. They are reputable companies which are good for the speculative accounts. Such companies are most likely to appreciate by the end of January of 2009.

2008 Aug 03 04:46 PM

[je:]

CDE reports Friday - we will see if it is under three dollars for long..........

2008 Aug 04 08:15 AM

[sieraromero:]

CDE is way undervalued in just about any measure of evaluation. In 2-3 years is an easy tripple bagger.

2008 Aug 04 09:10 AM

[Tom Szabo:]

Things will be challenging at CDE for quite some time. Palmarejo is the key to unlocking value but there is about a 1-in-100 chance that initial results will live up to the hype. In other words, there should be plenty of opportunity in the months ahead to buy CDE at fire sale prices. Once Palmarejo is a stable producer and the stock is over $3.50, I'd consider that a safe buy zone. Between now and then, this is a trading stock.

2008 Aug 04 04:58 PM

[sunsetlover:]

Good point Gamesix. More than half of COMS's total assets are intangibles!

Tip: Institutional investors don't look at Book Value...for good reason!...only MBA schools do :)

2008 Aug 04 08:22 PM

[marcopolode...:]

walgreens is buying RITE AID

2008 Aug 13 07:21 PM