Was doing some thinking this week end about my 40 years of investing experience (makes me an amateur by now I think, LOL) and reflecting back one of the worst guides I used for investing from blue chips to pink stocks was cash on hand, investors equity and similar items as a guide to value oversold cheap stocks. Always turns out they were cheap for a reason.
Just because the big boys float an IPO that is cash rich, does not mean that management is going to be frugal with all that cash and stock holder equity. I have had better luck with a few hungry, near broke tech stocks with a tight fisted CEO the last 8 years than with buyng stocks selling for less than book value.
Examples: I had better luck with $MVTG and $IFUS than I ever had with some major billion dollar stocks I thought might survive over the years. One I stayed cleared of and glad I did was the AONE IPO that went BK a few years later. It was a billion dollar IPO, MIT Li-Ion battery. Kodak was another.
Thoughts, feedback similar experiences????