Profitable or nearly breakeven companies trading near cash or below net asset value: HLYS. Heely’s makes those shoes with wheels. $105mm market cap, $100mm cash, no debt. They are growing huge in Europe and they are about to introduce sneakers without wheels. If anyone knows where I can get one of the shoes with sheels, please tell me. PRXI, makes the “Bodies” exhibit. $100mm market cap, $3bb worth of Titanic artifacts sitting on the ocean floor. Issues with where the bodies are coming from but they settled with the NY Attorney General and may not effect the $17mm in cash flows they are generating from these exhibits. ADPT, makes storage products. $383mm market cap, $400mm net cash. The company was GAAP breakeven last quarter and non-gap they made $5.7mm in income. So somebody can buy a profitable company right now, AND put $17mm in their pockets with the excess cash. It may not be so simple but its still dirt cheap with margin of safety. SOLD, $63mm cash, $65mm market cap, breakeven to profitable business. Good play on any sort of housing snapback and zero chance they go out of business. NINE, the best B2B internet play in China. They facilitate the online process of importing and exporting goods to and from China. $69mm market cap, $115mm net cash.

Good Q4 2007

12.1

"Adaptec Inc." -

networking and communication, storage of critical data software.

cheap