Stocks trading at/below net cash

Hi All, In response to Bro Gary\'s request, I have set up a new thread, discussing companies trading at/below net cash. Nextinsight highlighted Best World with net cash of $30.6 million. Best World closed at 15 cents on Friday. The market cap of the Company is $30.9 million. Almost the same level as its net cash. An investor buying at 15 cents is getting the business for free. Unless the business is losing money in 2009, which I understand, would not be the case, buying the stock now while waiting for the rebound, and getting compensated with a 5-10% dividend yield sounds pretty attractive to me. Any other companies to highlight?

China Milk - (Cash - all liabilities)= 0.24 cents cash in hand. 1. High margin business 2. Significant moat 3. Downstream milk processing which would boost earnings significantly going forward in 2010. 4. Main beneficiary of the recent melamine scandal. Major inflection point and also strength China Milk position being quality orientated. 5. Recent earnings showed resilience in earnings. 6. Huge potential in the dairy industry in China as the younger generation is only in the infancy of having dairy products as part of main diet. 7. Balance sheet is clean and healthy. 8. Cost of feed contain by the fact that they grow their own or from domestic sources and that they have their own manure...plenty of them. 9. Investment in R&D which will sustain their competitive position going forward. 10. I generally like the food industry which does well regardless of economic climate.

China Zaino = $0.18 net cash per share (negligible current liabilities and loans) 1. Market leader in the backpack 2. Focus company 3. New luggage segment showing strong growth - yes you can still grow in a recession as price becomes an all important competitive edge. 4. Building a mind share position in bags segment in china 5. Balance sheet strength 6. Trading at forward PE of 2.5

Hi I am a new player in value investing. Would anyone consider China Paper to be trading at/below (near) net cash? It has zero debt and moving towards less cyclical educational printing biz and stock price is below Net Current Asset Value. Wonder if anyone is also monitoring and studying the company? Any comments on this company by the veterans here? I would like to learn from you.

3 years on....

China Paper was 16 cents, now 7 cents.

Zaino (now known as Dapai ) : Lots of crap, now 3.8 cents. Headed for extincition, in my view.

China Milk == kena accounting fraud!

Best World : was 15 cents, now 15.3 cents. Business was bad in the last 3 years but was able to keep up its dividend payout and cash level.

2.2 cents for FY09 and 2.2 cents for FY10, so the yield is fantastic 14.6%.

but interim for FY11 cut from 1.2 cents to 0.6 cents. Not a good sign, hor?

Hi piper, I used to invest in china paper, it was 13 cents when I bought it. Not sure if it's present a good value at current pri e, but maybe I can share with u why I sold out. 1) over the past 4 yrs, there are 2 or 3 fund raising through issue o rights although their cash would be enough for their expansion plans. 2) I used to buy in then as they were planning for expanded capacity for coated papers. Profits did improve when the coated papers production starts but only for 1-2 quarters. Afterwhich the profits fell again. Profits have been highly unstable on a coaster ride. 3) their plans for a power generator meets with roadblock, this incident dOesn't leave me a good impression on the execution capabilities of management. How difficult is execution of such a plan? Why have they failed?? 4) cash is due to fundraising and not due to operation competitiveness. I would still give it a miss. Just my 2 cents worth...