A Stock Cramer Never Recommends
A Penny Stock that should be bought aggressively for the long term
TheStreet, Inc. (NASDAQ: TST $1.94)
- 32.1 million shares outstanding
- $59.7 million market capitalization
- $75 million in cash and equivalents = $2.34 per share
- $0 debt
- $0.10 annual dividend per share, approximately 5.5% yield
- Jim Cramer owned 2,657,210 shares as of January 24,2012
TST stock is trading less than book value. It's very difficult in today's environment to find any stock that is not trading at a premium. Most of the market is higher than it was in October and finding discounted investments is nearly impossible.
TheStreet (NASDAQ:TST) year end stock prices
- 2007 $15.92
- 2008 $ 2.90
- 2009 $ 2.40
- 2010 $ 2.67
- 2011 $ 1.68
Fundamentals have declined over the last 5 years. Weakening fundamentals are nearly always avoided on the long side, but I find the shares attractive on the health of the company's balance sheet and the low Operational Cash Flow multiple the stock currently trades.
- FY2011 Operational Cash Flow = $3,558,977.00 or $0.11/share
- OPS MULTPLE PER SHARE: 17X OPS
The online financial information sector is here to stay and Thestreet is a pioneer in the space. I believe TheStreet will be acquired at some point at premium to it it's current cash value of $2.34.
I'm not sure if Cramer is allowed to tout this stock, but if he could, it would get a big United States Booo-Yaaa!
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.