Companies with cash backing above MC

[sam76]

let em rip.

RED:
MC - $21,000,000
CB - $30,000,000

 

[Pommiegranite]

Re: Co's with cash backing above mc

Sam,

A further criteria would really sort out the men from the boys! i.e generating revenue (as opposed to nambypamby resource stocks which are literally years from getting paid AND will have massive capex hurdels AND therefore expect share dilutions).

TZL

Market cap - $45million USD
Revenue - $15million USD
Loss - $12million USD
Cash -$12millionUSD

The real kicker is that the loss was due to 'start up' expenses, which are generally expected and are now reducing. All the while, TZL are increasing revenues, therefore decreasing losses and should be (in a matter of months) cashflow positive.

ps, CEO expects TZ to capture several % of a $50billionUSD market

Plug over

 

[prawn_86]

IPR - Ipernica

Cash about 25mill
MC about 16 mill

 

[bas]

There are heaps of resource stocks, as long as they hold onto the dough until next cycle rather than waste it drilling holes into a project that will never get off the ground will be fine.

BRM
EMU
GIR
HDG
CVG

To name a couple i've come across.

 

[sam76]

AVH
MC - 3,832,430
CB - 8,000,000

 

[So_Cynical]

There is a bucket load of resource stocks with cash above MC, but only the Goldie's
have any real hope...broadly assuming, mined commodity prices remain at present levels.

Gold is still very profitable to mine....especially in Aussie dollars.

TRY - TROY RESOURCES

• Market Cap: 48,884,173
• Cash 60 Million (AUD)
• Debt 0
• Hedging 0
• last quarter Gold production 17,217 Oz (2 operations)
• Cost per ounce (AUD) $698
• Average price gold sales (AUD) $968

 

[noirua]

Many companies have commitments to spend or are making losses, perhaps both. Many are in the uranium exploration sector. No point having $6 million in the bank with money pouring away at $4 million a year and little hope of profits or raising more cash.

Only made the point as cash exceeding market capitalization can be misleading.

 

[kengaikl]

No point in looking at cash at bank. You have to factor in where that cash comes from. Borrowings?. It's better to look at net tangible assets per share and compare that to the share price than to look at cash per share. Having said that EHL has got a NTA per share of 78 cents but its been trading under that price for many months. Goes to show how stupid the share market can be sometimes.

 

[cuttlefish]

There are at least a few companies out there with no debt whatsoever, strong and safe positive cashflows and trading at less than half their NTA and at or below cash backing.

 

[doogie_goes_off]

Here's one with a big resource due soon, worth tracking IMO:

At current cash position (9.5M/165M shares) = 0.057c per share, market price is 0.05, wish I'd bought some yesterday!

ARE Argonaut Resources NL

Good drill results, although copper is not really flavour of the month.

 

[TheAbyss]

The Australian did some research for us. Excerpt below

In all, 43 stocks had cash backing exceeding 100 per cent of market cap. The "winner" is African nickel fossicker Botswana Metals (BML) whose $8 million cash (as per September quarter cash-flow statement) exceeded its market cap by 358 per cent. Then followed: Cape Lambert Iron (CFE), 355 per cent; EMU Nickel (EMU) 338 per cent; Alara Resources (AUQ) 314 per cent; and New Standard Energy (NSE) 313 per cent.

Rounding out the top 10: West Wits Mining (WWI) 290 per cent; Aurora Minerals (ARM) 267 per cent; Carnavale Resources (CAV) 247 per cent; Coalworks (CWK) 242 per cent; and RUM Jungle Uranium (RUM) 241 per cent.

At the shakier end, Avoca Resources (AVO) enjoys a $355 million market cap but holds a mere 2 per cent ($8 million) of cash backing. Others who could do with more cash to justify their valuation are: Summit Resources (SMM), with 3 per cent cash cover; Citigold (CTO) 5 per cent; Pan Australia (PNA) 9 per cent; and White Energy (WEC) 9 per cent.

Full article here: http://www.theaustralian.news.com.au/business/story/0,28124,24735840-23634,00.html

 

[resourceboom]

I havent done much research on them lately (held during the rises) but I believe AED has a greater cash backing then MC and are making profit.

I doubt I'll get back into these guys tho, as I'm concerned they may waste those dollars on the puffin field in an attempt to get somewhere near flows they previously predicted.

 

[resourceboom]

CFE is mentioned about, MC about twice cash backing, this is my fave.
The reason is I think it is very low risk, as there will be little outflows, and they have some great sites, that they plan on JORCing an selling for great profits, like they did with their previous site, and they have a keen Chinese buyer !!

 

[resourceboom]

AJL is I believe pretty close to cash backing and another low risk play imo.
This is because recently they forecast solid growth, not just profits.

 

[resourceboom]

Although its not cash backed over MC,

AEP - Allco Equity partners looks like a good solid play imo.

The current price (around $1.8) is more then compensated by an NTA of around 4.50ish at 30 Nov (when the market was hammered)

The MC is about $170M with around $80M cash, the bulk of their investements is about $300M in IBA health, in shares and convertible notes.
So it requires a bit of confidence in IBA to purchase AEP, but IBA has done ok over the last month too.

So still, think its massively undervalued, and very safe.

 

[justiceotp]

AGO - Atlas Iron

90-100Mil in bank and no debt.
have completed first 2 shipments to china and also put contracts into place.

http://www.atlasiron.com.au/irm/Company/ShowPage.aspx?CPID=1817

This link will give you an indication of projected earnings.

 

[justiceotp]

BRM - Brockman Resources

Over 100 Mil in the bank and sitting on some nice iron deposits.
Price has been rising a little last few days so cash backing approaching MC

 

[cuttlefish]

AGO's market cap is over $300 million so if they've only got $100m cash it doesn't really qualify. (technically neither do the previous two posts either).

 

[justiceotp]

ok ill try again then with one last one

MAK - Minemakers

about 100 Mil in the bank and MC of 60-70 Mil

 

[resourceboom]

AGO's market cap is over $300 million so if they've only got $100m cash it doesn't really qualify. (technically neither do the previous two posts either).

Hi Cuttlefish, correct if the other 2 are AEP and AJL

But AEP I think could easily sell IBA and be well above; I know, technically still doesn't count.

And AJL, not sure, someone might need to help out here, but must at least be very close (after repaying debt, once cash from SGL sales is finalised) I know, technically still doesn't count.

But rather then start a new thread, something like "Stocks with Cash and Liquid Investments with no debt if paid off, that are making profit or have prospective asset sales, that should be safe investments" blah blah, you get the drift, I thought I'd instead add to this thread.... hehe

Its still a good thread !!