Three 'Cheap' Stocks: Golfsmith, Radient and ValueVision

by: Michael Bryant

Here are three stocks that seem cheap on technical and fundamental standards.

Golfsmith International Holdings Inc. (GOLF-OLD) – $3.96

The company just reported its best fourth quarter in 4 years. As long as sales are flying, the company should do well.

Average 1 year analyst estimate: $5.25

Upside: 32.6%

Market cap: $61.00M

Price/Sales: 0.14

Price/Book: 0.68

Revenue/Share: $21.22

Cash: $776.63 thousand

% Short: 0.10%

Thus, it should be selling for about $20 based on revenue/share and price/sales. At a minimum, it should be $6 based on price/book.

(Click charts to enlarge)

Despite its run-up, the shares are not in overbought territory, yet.

Radient Pharmaceuticals (RPC) – $0.94

I really don't get why this company is selling for a market cap of $32 million. It already got an order of $10 million minimum in revenue. It supposedly has $41 million in equity. And the product is already approved. So what is holding the stock back?

Assets = Liabilities + Stockholder Equity

Stockholder Equity / Total Outstanding Shares = (approximately) Book Value

$41 million / 33.31 million shares = $1.23

The graph of the MFI shows they are very near oversold territory.

ValueVision Media (VVTV) – $7.15

Market cap: $234.49M

Price/Sales: 0.38

Price/Book: 3.01

Revenue/Share: $16.50

Cash: $15.57 million

% Short: 0.40%

Based on price/sales and revenue/share, it should be trading at least twice its value.

Again, despite the stock’s run, the MFI is not overbought, yet.

(All estimates and statistics are from Yahoo Finance. All graphs are from MSN Money)

Disclosure: I am long RPC.