by Fred Fuld III
It may be hard to believe that with so many stocks selling a nosebleed levels, especially the meme stocks, that there are actually stocks that not only sell below book value but also sell below cash per share. In addition, these stocks have little or no debt.
What this means is that if the company were to go out of business today, assuming the buildings, real estate, machinery, patents, and other assets were totally worthless, there would still be enough cash to distribute to all shareholders at an amount higher than the current stock price.
Here are a couple stocks that sell below cash per share, have no or almost no debt and have a price to earnings ratio of less than 20.
Digital Ally (DGLY) has a market cap of $67.5 million and trades at 2.83 times earnings. The company, which makes and markets advanced video recording products, recently reported that second quarter earnings increased by 44% over the same quarter last year.
Voyager Therapeutics (VYGR) has a market cap of $107.4 million and a P/E ratio of 6.17. It is a biotech company that focuses on the development of treatments for patients suffering from severe neurological diseases.
Just remember, the stocks are selling at a low price and have low market caps for a reason, and are speculative.
Disclosure: Author didn’t own any of the above at the time the article was written.