Thursday, March 16, 2017

STRI at 22% of Cash

Here is a simple one.  STR Holdings (STRI) is a solar panel encapsulant manufacturer currently selling for 22% of cash, 11% of BV, and 34% of the cash left after paying off all liabilities.  It's a classic net-net.   The stock has been in a death spiral but the chart shows it has found support around $0.15 over the past year.

That's it. Cheap numbers, all time low, chart support. Potential upside vs downside.

The problem is cash burn with a negative operating margin and decreasing revenue.  If you're into quality businesses with a moat this is not for you. If you believe turnarounds don't turn move on.