Selling below Cash less Liabilities, Profitable

Several weeks ago the stock symbol was DAGM, The new symbol is LOAN (Manhattan Bridge Capital)

The business shift prompted a name change to LOAN (Manhattan Bridge Capital)


LOAN was introduced at .94 back on July 2008 using a nano cap deep value filter.


The stock still deserves a closer look at these deep value prices selling far below the net cash value.

Loan has only 3.24 million shares outstanding and couple this with 6.651 million in cash less total liabilities of only $103,000. The stock clearly has a huge margin of safety. We’ve initiated a position.

The most recent news on business activity for LOAN can be found in the link http://biz.yahoo.com/pz/080812/148378.html

The 07/06/08 Selection Criteria for the original nano cap filter was as follows

1) Float * EV < 15,000,000Stocks with an Enterprise Value based on the outstanding float less than 15 million

2)EV/Sales <1.50Enterprise value/Sales < 1.50

3) Enterprise Value/Market Cap < 1.50Looking for stocks with little debt

4)[DiluAvg/TTM]>.96 Shares outstanding over the past 4 years/ TTM(trailing 12 months) > .96This indicates a tight control on dilution

5)Year over Year quarterly revenue growth greater than negative 15%[RevGrowthQtrly]>-15

6)Exclude stocks in the financial industry

7)Shares short as a percentage of float less than 5%


P/S price to sales ratio improving based on Average P/S over the last 4 years versus TTM P/S. We use a ratio; Average PS – TTM PS/Average PSIf the PS over TTM is improving compared to the average of the past 4 years we select

9)Positive Operating income – Taxes / Enterprise Value