Stock Quotes in this Article: BYD, DYN, GNK

The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.

SAN FRANCISCO (Stockerblog) -- The book value of a stock, in simple terms, is what you get when you sell off all the corporations assets, pay off all the debts and divide up what is left among the shareholders. Therefore, if you are buying a stock at a price below book value, you are getting a pretty good value. There are many stocks currently selling at significant discounts.


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    One example is Genco Shipping & Trading (GNK), which is trading at a huge discount, 22% of its book value. This operator of dry bulk carrier vessels trades at about 2.2 times earnings and 58% of sales. Revenue for the latest quarter was up 7.1%, while earnings dropped 60%.

    Dynegy (DYN) has a price to book ratio of 32%. This wholesales of electric energy has a price sales ratio of 0.39. The company recently experienced a 41% drop in revenue and generated negative earnings. The stock trades at less than $7 per share and has $3.31 in cash.

    Boyd Gaming (BYD) runs 15 casino entertainment facilities in Nevada, Mississippi, Illinois, Louisiana, Indiana, and New Jersey. The stock trades at half of book value, trades at 49 times forward earnings, and has a price sales ratio of 035. Revenue for the latest quarter was up 36.1%.

    If you are looking for below-book stocks that pay dividends, visit for a free downloadable list.

    Author did not own any of the above at the time the article was written.
    Fred Fuld III, the publisher of stock and bond investing blog Stockerblog and founder of WallStreetNewsNetwork, has been in the financial services industry for over 20 years, working as an investment advisor, options market maker at the Pacific Stock Exchange, vice president of a San Francisco money management firm, university faculty member and wholesaler for the New Alternatives Fund (the first environmentally conscious mutual fund). He is the author of the books
    Investing in Brazil Stocks and The Green Light on Green Stocks.