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Posted On: 05/05/2017 3:44:05 PM
Post# of 2218
$LQDT Cheap Stocks to Buy: Liquidity Services (LQDT)
Stock Price: ~$10
Liquidity Services, Inc. (NASDAQ:LQDT) is a super-risky play. It’s either going to double … or get cut in half.
If you’ve ever wondered what happens to surplus equipment — especially that of the government — wonder no more. LQDT puts it all up for auction.
This is a business that has been hammered during the Obama administration because 1) expansion of government means less surplus and 2) crappy recovery in the private sector means less surplus. However, the new administration hopes to reverse courses on both of these trends.
So while LQDT has been losing money the past two years, it does have $134 million in cash, or about $4.30 per share on a $10 stock, with no debt. So I think there’s limited downside here and possibly big upside if government starts cutting expenses.
Stock Price: ~$10
Liquidity Services, Inc. (NASDAQ:LQDT) is a super-risky play. It’s either going to double … or get cut in half.
If you’ve ever wondered what happens to surplus equipment — especially that of the government — wonder no more. LQDT puts it all up for auction.
This is a business that has been hammered during the Obama administration because 1) expansion of government means less surplus and 2) crappy recovery in the private sector means less surplus. However, the new administration hopes to reverse courses on both of these trends.
So while LQDT has been losing money the past two years, it does have $134 million in cash, or about $4.30 per share on a $10 stock, with no debt. So I think there’s limited downside here and possibly big upside if government starts cutting expenses.
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