interesting kind of free Stock: Optimal Group (OPMR) costs below its cash and owns WowWee robotics January 27, 2008Posted by deminvest in stocks, investment, Single stocks, growth stock, stock I own, Internet stocks, nasdaq, Nasdaq stock, OPMR, Optimal Group.
Tags: WowWee, Flytech, Dragonfly
Those are the “marvels” of a bear market. OPMR is a very interesting company, that produces WowWee award winning robots, like the Dragonfly and manages on-line payment systems. What is interesting is that (from a certain point of view) I can buy this company for free. Each shares own more cash than it costs:
Total Cash Per Share: $ 4.375
Last Trade: $ 4.24
Total Debt: $0
This means that if I could buy all the shares of the company at Friday’s closing price, and if there were no taxes, I could put back in my pocket more cash than I spent and own a debt-free company with cool products and a few hundred skilled engineers.
For a very interesting Post about Optimal Group and WowWee robotics click here. The author points out that OPMR price not only is less than the cash the company owns, but even half of its book value.
Forward P/E: 35.33 does not look such a good deal, but with all that cash, to me it is enough.
My friend Paolo bought a WooWee Robosapien. He goes crazy for it almost as much as I go crazy for my Roomba Robot.
Said all that:
Optimal Group is my buy for February. On February the first, I’ll probably toss $1000 on OPMR.