A Rare Breed in Nano-Caps: Cash-Rich, Debt-Free, and Dividend-Paying

Risky Business?

When you write about nano-cap stocks you’re not always writing companies that are ran the greatest. One year can prove to be extremely profitable and the next these companies are burning through cash. It’s one of the things that small time value investors need to be wary of when they come across a stock that seems cheap at first glance.

Heliogen, Inc. ($HLGN) was one of those kinds of companies. I had written about them previously here. The stock seemed extremely cheap, especially considering their financials had shown a sudden spike in income but, it turned out that most of this excitement was merely weird accounting.

Today I’m not going to be talking about value traps but a company that I think is well run and has the potential to be a stable business that provides its investors with steady returns. This company has $42.7 million worth of cash and securities on its balance sheet, no debt, an EV of $32.9 million versus a market cap of $75.6 million, a 6.47% dividend yield, and when I ran a DCF on them I got an upside of 31%.