Monday, May 07, 2018

Stocks Selling Below Cash Per Share and Little Debt

Please note that this is a sister publication of WallStreetNewsNetwork ( ) and eventually everything on this site will be transferred over there.

Do you think a return of 40% over a period of less than three years is pretty good? How about 157%? Those are the actual returns of stocks that you could have bought less than three years ago that were selling for less than the cash per share.

What is cash per share?

In simple terms, cash per share is the amount of cash the company has sitting in the banks divided by the number of shares. So if the company has little or no debt, and you can buy the stock below the amount of cash per share, you are getting a bargain. If the company went out of business today and all the inventory and equipment and all other assets were totally worthless, you would still make a profit because the cash you would receive for each share would exceed the price you paid.

Real Life Examples of Stocks that were Selling Below Cash

Let’s get back to those real life examples mentioned in the first paragraph of this article. MEI Pharma (MEIP) is an oncology company focused on the clinical development of therapeutics to treat cancer. Back in November of 2015, the stock was selling for 1.64, yet it had cash per share of 1.70, providing a discount to investors of 3.5% to the cash. Since that time, the stock has risen to 2.31, a gain of 40.85%. Not a bad investment for less than three years. Then there is (SPRT), a provider of cloud-based software and services. In November 2015, it was trading at 1.09, with cash per share of 1.25, a 12.8% discount to cash. The stock has now shot up to 2.81, a spectacular gain of 157.8%.

But what about companies that have a reverse split?

This is a great question. Let’s look at bebe (BEBE), the women’s clothing company, over the same time frame as the previously mentioned stocks. It was trading at a 22.6% discount to cash. Back then, the stock was trading at 0.41 per share, but the company had a 10 for 1 reverse split in December of 2016. What this meant was that for every 10 shares that you own prior to the split, you would now only have one share. So the effective cost basis of the original purchase price would be 4.10. The stock just closed last Friday at 7.00 per share, giving investors a 70.7% return. (To clarify this, assume you buy 1,000 shares at 41 cents, for a total cost of $410. The reverse split takes place, you now only have 100 shares at 7.00 or $7.00 total value, a gain of over 70%.)

Does the stock need to trade at a huge discount to make money?

Absolutely not. Here is a great example. GenCorp Industries (GENC) traded at a 0.1% discount to cash back then, actually one penny below the cash per share. The stock has gone from 10.18 to 15.50 a share, a very decent gain. But that’s not all. The stock declared a 3 for 2 stock split (what I call a “good stock split”) in July of 2016, which was effectively a 50% stock dividend. In other words, one and a half shares for every one share that you own. So the true gain on this stock from November 2015 is an incredible 128.3%.

Risks of Buying Below Cash Stocks

  • Possibility that the company is what we used to call the “walking dead” and what we now call “zombies”. These are companies that will continue to stumble along, never really grow but never go out of business, and they’ll just hold on to all their cash
  • Possibility that management may spend the company’s cash like a drunken sailor.
  • For biotech companies, the possibility that they will burn all their cash before they come out with an FDA approved drug

Advantages of Buying Below Cash Stocks

  • Provides a downside cushion for the stock price
  • In the event of bankruptcy or liquidation, excellent chance of getting back more money than your investment
  • Provides the company with a solid balance sheet – they can easily make payroll, buy new equipment, make acquisitions, without having to borrow

But the stock market is trading at lofty levels

Are there still stocks that can be purchased for less than cash per share? Yes, there are actually over a dozen different companies with stock prices below cash per share with little or no debt.

So what are some other companies selling below cash? has come up with a list of over a dozen companies that are currently trading below their cash per share, and have little or no debt. If you are interested in getting this list, just subscribe to our newsletter. We will be emailing the list in an Excel format to all subscribers who have subscribed by 11:59 pm on Tuesday, May 8. The list, which will be sent out the following day, will provide the following:
  • Company name
  • Stock ticker symbol
  • Country where the company is based
  • Price per share
  • Cash per share
  • Percentage discount to cash
  • Debt to Equity
However, you must subscribe by May 8 in order to get this free list. The reason why we have this short timeframe is that the information may become stale a week from now, and we want you to get timely information.

What’s the Cost to Subscribe? Nothing!!!

We charge nothing for our WStNN/Stockerblog newsletter. It is sent out between two to four times a month, so we won’t spam you, we won’t overload your mailbox every day, and we don’t sell or give away our list. (Some clown actually called me about a revenue split for selling newsletters, and he said all I had to do was give him my email list and they would take care of everything. Yeah right!)

How to Get the Below Cash Stock List for Free

Just fill in the box below. We don’t ask for a credit card number, we don’t need your phone number, and you don’t have to give us your street address.  Once you submit, you will need to check your email account for a confirmation. You may need to click on the link confirming that you want to subscribe.
By the way, if you are already a subscriber, you don’t need to re-subscribe. Just remember, new subscribers need to subscribe by 11:59 pm on Tuesday, May 8. The list will be sent out the following day.

Sign Up Now

Thanks for subscribing and happy investing!

Saturday, April 28, 2018

Stocks Going Ex Dividend in May 2018

Please note that this is a sister publication of WallStreetNewsNetwork ( ) and eventually everything on this site will be transferred over there.

Here is our latest update on the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.
This technique generally works only in bull markets, and can work in flat or choppy markets, but you need to avoid the technique during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.
The actual dividend may not be paid for another few weeks. has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the quarterly dividend amount, and annual yield.
Wells Fargo & Company (WFC)5/3/20180.39
Citigroup Inc. (C)5/4/20180.32
Intel Corporation (INTC)5/4/20180.3
The Cheesecake Factory Incorporated (CAKE)5/9/20180.29
International Business Machines (IBM)5/9/20181.57
GlaxoSmithKline PLC (GSK)5/10/20180.525
Exxon Mobil Corporation (XOM)5/11/20180.82
Target Corporation (TGT)5/15/20180.62
Amgen Inc. (AMGN)5/16/20181.32
Visa Inc. (V)5/17/20180.21
Aflac Incorporated (AFL)5/22/20180.26
Goldman Sachs Group, Inc. (GS)5/30/20180.8
Bank of America Corporation (BAC)5/31/20180.12
Lockheed Martin Corporation (LMT)5/31/20182
The additional ex-dividend stocks can be found here at (If you have been to the website before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at HEREor Most of the lists are free.
Dividend definitions: Declaration date: the day that the company declares that there is going to be an upcoming dividend.
Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.
Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.
Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.
Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.
Disclosure: Author did not own any of the above at the time the article was written.

Thursday, March 22, 2018

How to Invest in Spotify Before It Goes Public

Many, many years ago, I was able to buy stock in Apple (AAPL) before it went public. Around the time when Apple Computer [that was the original name] was considering going public, I noticed an article in Forbes Magazine which mentioned that many of the shares were owned by a publicly traded closed end fund called the Nautilus Fund.
So I immediately bought some shares of the Nautilus Fund, not being sure of whether the CEF would sells the shares of Apple when it went public or would spin the shares out to the shareholders.
As it turned out, Apple had its initial public offering and the fund gave its shareholders the shares in Apple.
Now there is another hot company that is planning on going public but not through an IPO.
Spotify (SPOT) is a Stokholm, Sweden based music, podcast, and video streaming service with 160 million users, 72 million of which are paying customers.
You may have already heard that the company is expected to begin trading on April 3 on the New York Stock Exchange. This will be a direct listing, which means that no underwriters will be involved.
The reasons that the company is doing this are several, and the company has laid them out in its filing with the SEC for Form FWP 1 Filed Pursuant to Rule 433 under the Securities Act of 1933.
Here is what Spotify said in that document:
Many people have speculated about why Spotify is pursuing a Direct Listing.
We think it is best that you hear directly from us why we think this is the right approach for the people at Spotify.
From where we sit, there are five key reasons.
First, to list without the Company having to sell shares.
Second, to offer liquidity for shareholders.
Third, to provide equal access to all buyers and sellers.
Fourth, to conduct the process with radical transparency.
And fifth, is to enable market-driven price discovery through the New York Stock Exchange.
So can an investor get in before the trading date?
Article continued at To see the rest of the article, click HERE.

Monday, March 19, 2018

My Tax Lien Investment Adventure

I used to go to those “get rich quick” seminars every year or so as I wanted to see what the latest money making schemes were being foisted upon the American public, and they would give me some ideas for articles. I have a friend who was  big fan of these events and was able to drag me along every once in a while.
Usually these conferences would last for a few hours and have three different presenters, each one lasting about an hour long, and at least one real estate related. So for one of the ones I attended, the first was how to flip houses, the second was trading with stock options, and the third, make money with tax liens.
The tax liens that were referred to in this event are county government liens against real estate where the property tax is past due. When the property owner fails to pay the taxes that are due, a tax lien certificate is issued. Investors can buy the tax lien certificates through auctions and can earn outrageously high interest rates of potentially 16%, 18%, 24%, or possibly 36% on their tax liens. The property owners are required to pay the back taxes plus the interest or they can lose their property to the tax lien owner.
The states that offer tax liens are as follows:
Click HERE to see the continuation of the article on