Those are the “marvels” of a bear market. OPMR is a very interesting company, that produces WowWee award winning robots, like the Dragonfly and manages on-line payment systems. What is interesting is that (from a certain point of view) I can buy this company for free. Each shares own more cash than it costs:

Total Cash Per Share: $ 4.375

Last Trade: $ 4.24

Total Debt: $0

This means that if I could buy all the shares of the company at Friday’s closing price, and if there were no taxes, I could put back in my pocket more cash than I spent and own a debt-free company with cool products and a few hundred skilled engineers.

For a very interesting Post about Optimal Group and WowWee robotics click here. The author points out that OPMR price not only is less than the cash the company owns, but even half of its book value.

Forward P/E: 35.33 does not look such a good deal, but with all that cash, to me it is enough.

My friend Paolo bought a WooWee Robosapien. He goes crazy for it almost as much as I go crazy for my Roomba Robot.

Said all that:

Optimal Group is my buy for February. On February the first, I’ll probably toss $1000 on OPMR.

4 responses to “interesting kind of free Stock: Optimal Group (OPMR) costs below its cash and owns WowWee robotics”

  1. Kevin Avatar
    Kevin

    Great tip. I’ll look into this one.

  2. Cogitator Avatar
    Cogitator

    This company is trading cheaply for a reason: it is not profitable. In the first 9 months of 2007, OPMR lost almost $5 million. If losses continue, cash will erode along with your purchase.

  3. Cogitator Avatar
    Cogitator

    I should add that the company spent $55 million on WowWee and only has about $60 million in cash now. That works out to $2.30 per share.

  4. Can’t resist goodies: my February buy is Optimal Group (OPMR) « Democratic Investments by the people for the people Avatar

    […] investment, nasdaq, risky investments, stock I own, stocks. trackback Last week I wrote I’d buy Optimal Group. Now I am doing as […]

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