$.99 with $3 / share net liquid assets cash flow positive.
S
SMOD is the cheapest stock I can find and i think is poised for a SRZ type run. It was cash flow positive last report and has been for years, but they are streamlining costs to increase cash flow.
Based on latest quarterly report:
Current assets = $384M
Current liabilities = $114M
Long term liabilities = $83M
Dilutive shares outstanding = 61.3M
So, conducting a pessimistic valuation of this company by assigning no value to their long-term assets (like property and equipment) and assuming the future free cash flows of the business will equal ZERO, when discounted to present value, this stock is worth (384 - 114 - 83) / 61.3 = $3.05/share!
So, to me this is a no brainer. Their best bet right now is to close shop, give a huge severance package to all the employees, then give out $2 - $3/share to all the shareholders. An even better possibility is that a big boy competitor will do this same math and scoop them up.
