Liquid Holdings Group (LIQD) offers proprietary cloud-based trading and portfolio management solution primarily in the United States. Basically they provide hedge funds with a cloud-based back-bone for trading.
Liquid Holdings has an excellent Price to Book of 0.97 which suggests the company’s market value seems attractively priced in relation to the assets it has. The company’s market value seems attractively priced in relation to the assets it has.
What I really like about Liquid Holdings is that it has cash of $35.9 million with ZERO debt. The company is in a strong financial position. It is adequately financed to execute its business plan and has additional funding that will help it survive downturns in the economy and or in the industry.
In 2012, LIQD had $2.3 million in sales. In 2013, LIQD had a $4.8 million in sales. With 100% sales growth over the last 12 months, this trend is likely to continue at a sustained and measurable pace. Revenue is expected to grow when LIQD reports earnings next week on October 30, 2014.
Like most small caps, LIQD has gone into oversold on the RSI. The volume has flattened out which suggests LIQD is putting in a bottom (click on the chart below to enlarge):
A year ago, LIQD use to trade for around $9 a share. Today it trades for $0.96. About a year ago, TheStreet had Liquid Holdings on to talk about industry trends in providing cloud services for hedge funds:
Disclosure: I do not hold any position in any stock mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.