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BroadVision: A Small Cap Trading Way Below Cash Value

ByNicholas Santiago
Published 04/03/2013, 12:37 AM
Updated 07/09/2023, 06:31 AM

BroadVision, Inc. (BVSN) is a great low risk small cap company in my opinion. Well, as low risk as a small cap can be. While I do not subscribe to fundamental valuations on stocks, I cannot deny this one. The company has over $11 per share ($52 million) in cash and is only trading at $8.67 per share. That means it could move as high as $11.00 and still only be trading at cash value. With over $52 million in cash, they are only burning $5 million a year. This means, they have 10 years in cash or ten years to make something big happen. They hold no debt and the float is small. This is a software company that has major potential not only for big deals but also for a possible larger player to scoop them up.

On the technical side, the company recently traded as high as $11.89. It has since fallen back to its key gap fill (note the chart below). In terms of risk to reward, this has about as much reward with small risk as any small cap. Based on these factors, I bought some in this lower range, looking for a pop back to cash value to sell half, while holding the rest for a move higher.

Disclosure: Gareth Soloway is long BVSN.
BVSN

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