A Cheap, Cash Rich Tech Stock
By Bret Jensen:It is getting harder to find undervalued stocks in the market. One stock, Oplink Communications (OPLK), recently caught my eye recently because it has a huge cash balance, low valuations and has underperformed the S&P by around 15% over the last six months. It looks like a rare value in this market. 7 reasons OPLK is cheap at under $16 a share:
- It has over $9 a share in net cash on its balance sheet.
- The median price target for the five analysts that cover the stock is $22 a share.
- Insiders have a significant stake in the company and have not sold a share in over a year.
- The stock has good technical support in this price range (See Chart).