SOLD, HouseValues
price: $3.4
shrs out: 24.5M
market cap 83.2M
cash: 74.4M
LT debt: 1.8M
Enterprise Value: 10.4M
SOLD helps Realtors sell real estate on the Internet. Business sucks right now, seeing YOY declines, and investors hate anything having to do with housing. But what does 10.4M get you?
company already wrote down goodwill by 6.2M in 2006 and another 1.2M in Q3 2007 for the PP&E of Yakima facility. GW balance now stands at 3.6M, PPnE at 8.5, there's barely any non cash working capital.
So, basically this stock is trading for its cash and some assets, and the market is saying the business is worthless.
Or if you are in the glass is half full camp, we can continue to make the analysis on SOLD: is their business worth NOTHING? Haven't they been able to generate massive cash? How accretive / unaccretive are recent acqusitions? Will Realtors spend more in the future with SOLD to help them sell houses if resi market turns? Is this a bet on the US residential real estate market?
to be continued.
Seems like there is value here.
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