Technology

MoSys Inc. (NASDAQ:MOSY) Trades at Discount to Cash Holdings

Cobalt International Energy, Inc. (NYSE:CIE)

MoSys Inc. (NASDAQ:MOSY)

MoSys Inc. (NASDAQ:MOSY) shares rebounded from their downtrend to gain over 34% for the day. MOSY shares ended Monday’s trading at $0.61 and shot up after today’s open before retreating, and then rebounding again to close at $0.82. Volumes were five times their 30-day, daily average.

The Performance Numbers

Shares of MoSys Inc. (NASDAQ:MOSY) are up over 18% for the week, and up almost 4% for the month. However, that performance betrays the long-term trend. YTD, MOSY shares are down almost 65% and for the year are down over 75%. MoSys Inc. (NASDAQ:MOSY) has had its market capitalization cut by two-thirds over the past three months as MOSY shares make new 52-week lows on a regular basis. That performance makes MOSY’s Relative Strength Index (RSI) score of 44.5 all the more curious. Despite the dismal stock performance, MOSY’s RSI figure is not in “oversold” territory. Most investors and traders consider an RSI score of 30 or below to generate an “oversold” condition on the stock. So does MOSY have lower to go still?

Trading at a Discount to Cash?

One factor in its favor is MoSys Inc. (NASDAQ:MOSY) cash/share figure. That currently is posted at $0.83/share. So, if the number is accurate, MOSY shares, at $0.82, are now trading at a $0.01 discount to the company’s cash holdings. MoSys Inc. (NASDAQ:MOSY) does have total liabilities posted at $11.24 million but total assets are $22.33 million which gives a stockholder equity number of $11.09 million. So is MOSY trading at a discount to its cash holdings?

MoSys Inc. (NASDAQ:MOSY) was founded in 1991 and is headquartered in Santa Clara, CA. The company develops and sells integrated circuits for the high-speed networking, digital storage, communications, and computing markets. The space MoSys Inc. (NASDAQ:MOSY) does business in is competitive and, unfortunately, MOSY shares stand out as the largest underachievers in the sector. Their earnings tell a similar story. Since 2012, MOSY shareholders have experienced a loss each year. In 2012 the EPS loss was (-$7.05). That was followed by yearly losses of (-$5.48), (-$6.60), (-$5.04), and, for 2016, (-$4.86). And those numbers tell the real story for MoSys Inc. (NASDAQ:MOSY) – if you are in the technology field and cannot produce a profit, investors have a slew of companies to choose from that can and do.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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