Crazy how irrational Mr. Market can be on his bad days.
Imagine being able to take a walk down to the money store and buy a bundle of cash for 40% off. Is that what's happening with Kronos stock? Lets break it down:
As of last quarter, their total assets were $182.98M and their total liabilities were $46.01M, leaving a book value of equity of $136.97M. Using today's market capitalization of $77.52M, this puts the company's Price-to-Book Ratio at just 0.57.
Now, let's aggressively assume that their property, plant, and equipment is actually worthless, and look at only their short-term (current) assets. Last quarter, their current assets were $158.36M. This alone covers all of their liabilities and still leaves $112.35M, far in excess of their current market cap.
A situation like this generally occurs in times of extreme negative sentiment, which often turns out to be the best time to buy.
Although the company is not yet EPS positive, a balance sheet like this is highly desirable.
Combine that with a new uptrend above a few key moving averages, and you have a recipe for what appears to be an attractive investment.
Imagine being able to take a walk down to the money store and buy a bundle of cash for 40% off. Is that what's happening with Kronos stock? Lets break it down:
As of last quarter, their total assets were $182.98M and their total liabilities were $46.01M, leaving a book value of equity of $136.97M. Using today's market capitalization of $77.52M, this puts the company's Price-to-Book Ratio at just 0.57.
Now, let's aggressively assume that their property, plant, and equipment is actually worthless, and look at only their short-term (current) assets. Last quarter, their current assets were $158.36M. This alone covers all of their liabilities and still leaves $112.35M, far in excess of their current market cap.
A situation like this generally occurs in times of extreme negative sentiment, which often turns out to be the best time to buy.
Although the company is not yet EPS positive, a balance sheet like this is highly desirable.
Combine that with a new uptrend above a few key moving averages, and you have a recipe for what appears to be an attractive investment.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.