How Fearful is the Market?

Here is a great example of how fearful the market is right now. Now I am writing the post before the opening of the market Friday, October 10.

Stock: LCA-Vision (LCAV)

Total Cash LCAV Has: $62.15 Million

Total Debt LCAV Has: $24.58 Million

That leaves $37.57 Million in Cash after subtracting the debt.

Total Shares Outstanding: 18.53 Million

Total Cash per share after taking into account debt: $2.03 per share
Current Market Price: $2.63 per share

So, after taking into account the amount of cash this company has and all of its debt you are essentially paying $0.60 per share for a company that is earning $1.08 per share, trailing twelve months. The key here of course being the trailing twelve months, nobody knows what the future 12 have in store.

But to put this in perspective, that is like going to buy a house for $263,000 and the realtor says, "And one of the nice things about this house is that there is a safe in the master bedroom with $203,000 in cash inside of it that comes with the house." Do you think you might buy that house?

Keep an eye on this stock today. If it drops below $2.03, you would be getting paid to buy this company! Now that's a fearful market.