#$aro

[estimize]

Will American Eagle Suffer the Same Fate as Aeropostale?

American Eagle Outfitters (AEO) Consumer Discretionary - Specialty Retail | Reports May 18, After Market Closes

Key Takeaways

The Estimize consensus is calling for earnings of 18 cents per share on $730.07, right in line with Wall Street on both the top and bottom line

American Eagle’s turnaround has been led by the wildly successful Aerie brand

Aeropostale’s recent move to file for bankruptcy might be a sign of things to come in the teen space

What are you expecting for AEO? Get your estimate in here!

Teen retailers may not be a thing of the past after all. During the fourth quarter both Abercrombie and American Eagle delivered robust turned back the clock with strong earnings and revenue growth. American Eagle kicks things off this week when they announce first quarter earnings this Wednesday, after the market closes. Early indications look as if the company will extend its current streak of growth.

The Estimize consensus is calling for earnings of 18 cents per share on $730.07 million in revenue, right in line with Wall Street on the top and bottom line. Per share estimates have come down 9% in the past 3 months but still project a 21% increase from a year earlier. Revenue on the other hand is forecasted to increase 5% over the same time frame. On average the stock is a positive mover during earning season. In the 3 days leading up to its report, shares typically increase 3%. This should help reconcile some of the losses that shareholders have been seeing lately. After a tough few years, American Eagle has finally started to turn things around. Last quarter saw strong growth across its key brands. Consolidated comparable sales grew 4% supported by a 26% increase in aerie brands and 3% growth in core AE products. Factory stores finally broke even, compared to a 9% contraction from Q4 2014. The company provided favorable guidance for the first quarter and fiscal year 2016. American Eagle portfolio of established brands should continue to reach its target customers, led by its Aerie Brand.

Unfortunately, American Eagle is not fully in the clear yet. The company still operates in a highly concentrated retail industry against Abercrombie, Gap and H&M.  Aeropostale’s recent move to file for bankruptcy may also be a sign of things to come in the teen space. Meanwhile, American Eagle is overly dependent on outside suppliers, so any disruption in this process could have a devastating impact. Do you think AEO can beat estimates? There is still time to get your estimate in here!

Photo Credit: Mike Mozart

[estimize]

Will Aeropostale be the Next Teen Retailer to Beat on Earnings?

Aeropostale, Inc. (ARO) Consumer Discretionary - Specialty Retail | Reports March 17, After Market Closes

Key Takeaways

The Estimize select consensus is expecting EPS of -$0.02, 2 cents below Wall Street, while revenue expectations of $545.60 million are $4 million under the Street

Aeropostale announced that they would be laying off 100 corporate employees in Q4 as part of an effort to lower expenses by $40 million a year

Despite strong earnings from Abercrombie and American Eagle, it looks unlikely that Aeropostale will match their success

What are you expecting for ARO? Get your estimate in here!

Teen retailer, Aeropostale is scheduled to report fourth quarter earnings tomorrow, after the market closes. Earnings over the past few years have followed a slippery slope as teen retailers struggle to find ground in this ever changing fashion world. Shareholders are taking the biggest beating from this trend and are now down 84.3% in the past 12 months. Tomorrow the Estimize select consensus is expecting EPS of -$0.02, 2 cents below Wall Street, while revenue expectations of $545.60 million are $4 million under the Street. The Estimize community has been optimistic on Aeropostale’s profitability in the past three months, revising EPS estimates up 54%. Since February 5 revisions have been more rampant, with earnings soaring 92% and revenues up 4%. These estimates predict as a YoY decline of 585% on the bottom line, while sales are expected to contract 7%. Aeropostale has consistently outperformed expectations, beating Wall Street in 63% of reported quarters.Last week, both Abercrombie and American Eagle reported strong earnings, signaling a potential turnaround for teen retailers. Since then, shares of Aeropostale have soared and are now up 51.79% year to date. Investors are hoping the positive momentum created by ANF and AEO continues when Aeropostale reports fourth quarter earnings next week. Last quarter the company saw net sales decrease by 20% thanks to 10% declines in comparable sales and e-commerce channels. Aeropostale announced that they would be laying off 100 corporate employees in Q4 as part of an effort to lower expenses by $40 million a year. This comes as no surprise given the company has reported a loss in seven of the past eight quarters. Instead of trying to keep pace with fashion trends, the company remains focused on providing teens with a uniform of basic clothing. So far, that strategy has failed. Do you think ARO can beat estimates? There is still time to get your estimate in here!

Photo Credit: jpellgen

[estimize]

5 Stocks to Watch this Week 3/14 - DDD, DSW, PLCE, CTRP, ARO

All of these names have one big thing in common, their expectations have been revised upwards ahead of this week’s reports. Keep an eye on these earnings releases. 

Tuesday, March 15

Wednesday, March 16

Thursday, March 17

3D Systems (DDD)

Information Technology - Computers & Peripherals | Reports March 15, before the open.

The Estimize community is looking for EPS of $0.04 and revenue of $179.5 million, 4 cents below Wall Street on the bottom-line, and around $3 million below on the top. 3D Systems is seeing favorable revision activity lately with earnings and sales up 10% in the past three months. Compared with the same period last year, this predicts an 84% decline in earnings while sales are expected to decline by 6%.

What to Watch: What was once expected to be the next big thing, 3D Systems (DDD) and all other 3D printing companies had a disappointing 2015. 3D Systems is coming off a dismal third quarter, posting 94% YoY declines on the bottom line while also missing its sales number. Even on a constant currency basis, revenue dipped 3%. Macroeconomic factors, particularly currency headwinds, have been the biggest hindrance to the company’s financial performance, as they generate a large portion of revenue from international markets. Last week 3D Systems received a much needed boost after rival company Stratasys reported better than expected earnings. The rival company posted a loss of -$0.01 and revenue of $173.36 million which trumped expectations by 9 cents and $6 million, respectively. In the moments following, DDD shares jumped 7% and are now up 36.94% on the year. The company remains focused on expanding its strategic partnerships and emerging in the healthcare industry to cope with weaker demand.

DSW (DSW)

Consumer Discretionary - Specialty Retail | Reports March 15, before the open.

The Estimize consensus calls for EPS of $0.08, in-line with Wall Street, with revenue expectations of $643.47 million, roughly $2 million higher than the Street. The Select Consensus on the other hand, is showing a more modest beat of $1 million on the top line. The Estimize community has maintained an optimistic stance on DSW, revising EPS estimates up 9% since the company last reported. Compared to the year prior, current estimates predict a decline in profitability of 75%. On average, the company has consistently beat expectations, trumping the Estimize consensus 73% and Wall Street 81% of recorded quarters.

What To Watch: An interesting pattern has emerged in recent weeks, with retailers outperforming the market despite mixed quarterly earnings and weaker guidance. DSW’s upcoming fourth quarter earnings are expected to contribute to this trend. The footwear retailer beat in 2 of the past 3 quarters but consistently falls short of guidance. In the last reported quarter, DSW posted a 0.6% decline in sales while comp sales decreased 3.9% on a year-over-year basis. Yet investors responded positively, boosting shares 11.04% in the past three months. DSW’s focus on expanding its omni-channel network, smaller format stores and strategic acquisitions will be key to drive growth but also help protect them from internet competition. Earlier this year, the footwear retailer agreed to acquire online shoe retailer Ebuys for $62.5 million with a potential $55 earnings bonus on top of that. The acquisition is expected to bolster its position in ecommerce and off-price retail, two high growth areas in the industry. Ahead of its earnings next week, Goldman Sachs and Credit Suisse downgraded DSW’s stock, contradicting the current trend retailers are experiencing.  

The Children’s Place (PLCE)

Consumer Discretionary - Specialty Retail | Reports March 15, before the open.

Both Estimize and Wall Street are right in line on this one, with EPS expected to come in at $1.11 and revenues anticipated at $500 million. Both of these figures have improved significantly since the company last reported earnings, with the Estimize community increasing their Q4 earnings expectations by 8% and revenues by 4%, and an even greater lift from the sell-side of 12% and 5% on each of those metrics, respectively. This would project YoY profit growth of 17% and sales growth of 3%. And while this name beats on the bottom-line around 89% historically, it only beats revenue projections 44% of the time.

What to Watch: After a period of negative top and bottom-line growth in 2013 and 2014, The Children’s Place returned to the green on earnings in 2015, while revenues remained suppressed. During the third quarter, unseasonably warm weather across most of the US caused same store sales (SSS) to dip 3% compared to the prior year. However, at the time of the announcement on December 8, fourth quarter SSS were running positive at 4.5%, representing close to half of the company’s planned sales volume for Q4. Despite continued weakness in traffic, early results were positively impacted by increases in key selling metrics. Inventories also showed an improvement at the end of Q3, down 4.4% as compared to the year-ago period. Like so many others in the retail space, PLCE continues to invest in its omni-channel strategy, with the implementation of a new distributed order management system in the latest quarter. The company plans on closing 200 stores through 2017.

Ctrip.com International (CTRP)

Consumer Discretionary - Internet & Catalog Retail | Reports March 16, after the close.

The Estimize community is looking for EPS of $0.05 and revenue of $441.8 million, a nickel higher than Wall Street on the bottom line and a little over $7 million greater in sales. Ctrip has seen favorable revisions activity of late, with earnings soaring 57% in November. Compared with Q4 2014, this predicts a YoY increase on the bottom line by 130% while sales are expected to grow 42%. Historically the hospitality company has consistently beat expectations, trumping Estimize in 56% and Wall Street in 80% of recorded quarters.

What to Watch: Chinese travel has been a hot industry in the past year, prompting travel booking companies to rush to get in on the action. Leisure and outbound tourism have been the two biggest drivers for the travel market. In the fourth quarter international ticket volume grew 18.3% while China’s air passengers grew by 9.6% on a year-over-year basis. Ctrip has been the primary beneficiary of the rising travel trend, holding a dominant market position in the region. Recent partnerships with eLong and Qunar are expected to propel Ctrip’s market share in Chinese hotel and airline bookings to about 70%-80%. Moreover, Priceline’s recent $500 million investment in Ctrip will help bolster its expansion in outbound travel. Ctrip’s consolidation of the Chinese travel industry and growth in the global market gives it the scale and distribution power to generate more meaningful margins. Shareholders have been pleased with the company’s progress as shares have skyrocketed 66.91% in the past 12 months

Aeropostale (ARO)

Consumer Discretionary - Specialty Retail  | Reports March 17, after the close.

The Estimize Select Consensus calls for EPS of -$0.04, 4 cents below Wall Street, while revenue expectations of $545.8 million are $4 million under the Street. However, our Select Consensus is more bullish, expecting EPS to come in flat. The Estimize community has been optimistic on Aeropostale’s profitability in the past three months, revising EPS estimates up 54%. Since February 5 revisions have been more rampant, with earnings soaring 92% and revenues up 4%. These estimates predict as a YoY decline of 585% on the bottom line, while sales are expected to contract 7%. Aeropostale has consistently outperformed expectations, beating Wall Street in 63% of reported quarters.

What to Watch: Last week, both Abercrombie and American Eagle reported strong earnings, signaling a potential turnaround for teen retailers. Since then, shares of Aeropostale have soared and are now up 51.79% year to date. Investors are hoping the positive momentum created by ANF and AEO continues when Aeropostale reports fourth quarter earnings next week. Last quarter the company saw net sales decrease by 20% thanks to 10% declines in comparable sales and e-commerce channels. Aeropostale announced that they would be laying off 100 corporate employees in Q4 as part of an effort to lower expenses by $40 million a year. This comes as no surprise given the company has reported a loss in seven of the past eight quarters.  Instead of trying to keep pace with fashion trends, the company remains focused on providing teens with a uniform of basic clothing. So far, that strategy has failed.

How do you think these names will report this week? Contribute your estimates here!

(Photo Credit: afranco)

[estimize]

5 Stocks to Watch This Week 11/30 - ARO, KR, DG, ULTA, AMBA

Wednesday, December 2

Thursday, December 3

Aeropostale, Inc. (ARO)

Consumer Discretionary - Specialty Retail | Reports December 2, after the close.

The Estimize consensus calls for EPS of -$0.36, a penny worse than the Wall Street consensus. Currently, the Estimize community is looking for sales of $388.98M, a mere $420k higher than the Street’s expectation.

What to Watch: Last week, Abercrombie & Fitch kicked off the teen retail reports with a bang. The company posted FQ4 2016 EPS of $0.48, 28 cents above the Estimize consensus. Revenues also beat expectations by $11.4M. This was a welcomed report as teen retailers have continued to lose market share to the “fast fashion” names such as H&M, Zara and Forever 21. Aeropostale is on the lower-end of the teen retailers, catering to more value-conscious shoppers. The company missed estimates for the first two fiscal quarters of 2016, and are expected to post their third consecutive quarter of negative EPS in FQ3 2016. Same store sales have also been a weak spot, falling 8% in the latest quarter. As such, the company provided Q3 EPS guidance in a range of -$0.30 to -$0.38, and operating losses of $19M - $25M. CEO, Julian Geiger did say he was pleased with results from the beginning of the back-to-school shopping season, boosted by a particular improvement in girls’ apparel. We’ll hear on Wednesday if that trend continued throughout the rest of the quarter, and more on the company’s outlook for the all important holiday shopping season.

The Kroger Co. (KR)

Consumer Staples - Food & Staples Retailing | Reports December 3, before the open.

The Estimize consensus calls for EPS of $0.41, 2 cents below the Wall Street estimate. Revenues of $25.27B are above the Street’s expectation for $25.22B.

What to watch for: Kroger has been intently focused on expanding their natural and organic food business and as a result has been able to steal market share from upscale grocers. The mainstream grocery chain provides value offerings to customers that are no longer willing to spend their whole paycheck at Whole Foods. The company has shown strong fundamentals, with earnings per share (EPS) growth in the double digits for the past six quarters, and double-digit sales growth in four of the past six quarters. Kroger faces some stiff competition from other retailers enforcing the same strategy such as Wal-Mart, Target and Sprouts. The stock is up 18% this year.

Dollar General (DG)

Consumer Discretionary - Multiline Retail | Reports December 3, before the open.

The Estimize consensus calls for EPS of $0.87, in-line with Wall Street. Revenues of $5.084B are actually just slightly below the Street’s expectation for $5.087B.

What to Watch: Last week, fellow discounter Dollar Tree greatly missed EPS expectations, but managed to beat on the top-line by over $100M. Dollar Tree’s miss can be attributed to costs related to their acquisition of Family Dollar Stores this summer, after Dollar General placed a failed bid. Prior to the merger, DG was the largest deep-discount retailer in the country, boasting approximately 11,000 locations, now competing with Dollar Tree’s 13,500 stores nationwide. The company now has to find ways to grow amidst increasing competition and shrinking market share. One advantage Dollar General has is greater customization of its stores, focusing on stocking each location with products that sell best in that neighborhood.  By comparison, Family Dollar Stores have traditionally been stocked by the McLane Co., making the offerings very uniform at each location. Dollar General stores typically occupy small neighborhoods, too small for Wal-Marts. But the discount wars are heating up as Wal-Mart and even Target eye smaller neighborhoods. Wal-Mart plans to open up 200 smaller stores this year alone, bringing the total up to 700 of its total 3,200 stores worldwide. Target is further behind, but has made opening up their TargetExpress stores a main priority going forward.

Ulta Salon, Cosmetics & Fragrances (ULTA)

Consumer Discretionary - Specialty Retail | Reports December 3, after the close.

The Estimize consensus calls for EPS of $0.93, a dime above the Wall Street consensus, but still 9 cents below company issued guidance. Revenues of $784.4M are above the Street’s expectation for $732.4M, yet again below the company’s guidance of $876M.

What to Watch: Ulta Salon, Cosmetics & Fragrance, Inc. is one specialty name that has posted incredibly strong fundamentals for the last several quarters, reaping the benefits of a growing beauty sector which has seen annual revenues increase by 2.3% for the last five years according to IBIS World. For the last 7 consecutive quarters the company has beat the Estimize consensus on the top and bottom-line, and according to guidance they are poised to do so again in the third quarter. Same store sales have been incredibly strong for this name, increasing 10.1% in the second quarter, causing the company to increase several of their 2015 guidance metrics. Comparable store sales are now expected to grow in a range of 8 - 10%, above previous guidance of 7 - 9%. Ulta also anticipates EPS growth will be in the high teens for 2015, compared to prior guidance of 15 - 17%. The beauty retailer has done a great job at pulling back on discounting and revamping its loyalty program, both efforts which have helped to increase average order value. Other efforts to invest heavily in better messaging, more targeted promotions and employee training have also paid off. While there is certainly stiff competition in the space, with many department stores such as Kohl’s, Macy’s and J.C. Penney doubling down on their beauty efforts, Ulta is the only to offer a products with a wide array of price points as well as salon services. While an awareness gap still separates it from competitors such as Sephora, the stock has done remarkably well this year, rising 34%.

Ambarella, Inc. (AMBA)

Information Technology - Semiconductors | Reports December 3, after the close.

The Estimize consensus calls for EPS of $0.91, 2 cents below the Wall Street estimate. Revenues of $92.5M are above the Street’s expectation for $91.5M.

What to Watch: Ambarella is best known for making the chips that go into GoPro cameras, one of its top customers. While GoPro has been able to achieve triple-digit quarterly EPS growth since its IPO in June 2014, the company missed the mark big-time in their latest report. In FQ3 2015, GoPro results missed the Estimize consensus by 7 cents on the bottom-line, and by $43M on the top-line. Despite exciting new endeavors which include a quadcopter drone and virtual reality cameras, investors fear the recent drop cannot bode well for Ambarella, which relies on GoPro for a large chunk of its revenues. As a result of the GoPro report, shares of AMBA fell to $49.44 in the following days, their lowest level of the year. This just continued a downward trend for the stock, which has lost over half of its value since peaking at $126.70 in June. This should quell any fears around a rich valuation, which previously spooked some investors. Any good news out on Thursday could help to boost the stock.

Be sure to get your estimates in for these names here!

(Photo Credit: Mike Mozart)

[estimize]

How will this Major Teen Retailer Fare when Earnings are Released Tomorrow?

Abercrombie & Fitch, a clothing retailer specifically targeted towards teen consumers, will be reporting 3Q2016 earnings tomorrow before the bell. The company has had problems keeping up with competition and is focusing on returning to its roots through a comprehensive brand revival process. Analysts are holding mixed opinions on whether or not a positive earnings surprise is probable, with the vast majority calculating year over year declines in revenue and EPS.  The Estimize consensus is anticipating a favorable EPS of $0.21 and revenue of $867.7 million as Wall Street Analysts are foreseeing EPS of $0.19 and revenue of $869 million.

Though sales figures have not been ideal, the Hollister stores have helped comps mainly in Asia and Europe. Overall same store sales have gotten better over the past two quarters. In Q12016 and Q22016, comparable stores growth dipped 8% and 4% respectively. Investors will be anxiously awaiting the figures for this quarter to see whether or not Abercrombie will be in a serious hole going forward.

To reestablish itself as one of the leaders in teen fashion, Abercrombie has redesigned its stores for a trendier feel and has reduced the use of logos on clothes. The logo reduction is a smart move, as often times, select shirts and pants would have the massive moose displayed. Trendier fashion items usually do not contain large logos.

For Abercrombie & Fitch to show investors substantive growth, the time has come to capitalize on the holiday season. Retail chains targeting teens like Gap and Aeropostale have been suffering and have experienced significant declines in share prices. Gap is down over 35% and Aeropostale shares are currently trading at a mere $0.70. The declines in all three companies including Abercrombie highlight the fact that teens are not spending on clothing anymore. With Black Friday coming up sweet in-store and online deals on “cool” clothes could help separate the Ohio based retailer from its competition.

Furthermore, the H&M model of fast fashion seems to be the way to go, pushing large volumes of cheap yet stylish clothing. Senior management has hinted of the launch of a mobile marketing campaign throughout the coming seasons. The campaign will instill the Abercrombie brand with new items that resonate with shoppers, with the ultimate goal of building up a customer base the firm has seemingly lost.

Interested in contributing your own estimate? Click Here!

Photo Credit: thinkretail

[estimize]

Bye Bye Abs: Abercrombie Hopes Latest Changes will Spur Sales

Very rarely does the Estimize community have a corporate earnings or revenue consensus that is lower than Wall Street’s, but this is the case for Abercrombie & Fitch which is set to report results tomorrow after the bell. The Estimize EPS consensus calls for -$0.36 vs. Wall Street’s -$0.34. Revenues of $729M are also below the Street’s estimate for $734M.

Abercrombie is well aware of what the issues are, but can they reverse them? They’ve already ditched logoed gear which has fallen out of favor with teens, and they recently announced they were getting rid of suggestive and sexy images that have long been a staple of their marketing strategy. There has also been a push to diversify stores which have traditionally been staffed by preppy all-American employees.

Teen retailers continue to lose market share to the “fast fashion” names such as H&M, Zara and Forever 21. Fellow teen retailer Aeropostale reported crushing Q1 results last week, with EPS of -$0.56 missing analysts’ estimates. Revenues also missed, signifying a 20% year-over-year decline. Not all in this space have been doing poorly, however, American Eagle Outfitters put up superb results last week, beating on both the top and bottom-line, and even growing EPS 650% from the year-ago quarter.

As for Abercrombie, they haven’t only been struggling here in the US, but internationally as well, posting 11 consecutive quarters of negative same store sales, a trend that is only being exacerbated by the stronger dollar. The stock is down around 30% this year, and could use a positive surprise tomorrow and maybe some news of an appointed CEO which they have been without for 5 months.

(Photo Credit: Grupo teatral ¿Adóndevamos?®)

[valuentumbrian]

15 Stocks That Have Boatloads of Net Cash Relative to Their Market Cap

They say that value is in the eye of the beholder. This is certainly true, but when it comes to stock valuation, value rests on the balance sheet and cash flow statement.

The build-up of net cash on the balance sheet thatresults from the net performance of cash flow from operations less both capital expenditures and dividend payments is the primary reason how the intrinsic value of a firm increases over time. Think of a company’s balance sheet like your personal savings account. The more money you put into your personal savings relative to your liabilities and what you spend on personal dividends like vacation, for example, the wealthier you are. 

Similarly, the more cash a company saves on its balance sheet after capital spending and paying dividends, the more valuable the company is, all else equal. Perhaps somewhat counter-intuitive, dividend payments actually reduce the value of the company when cash is removed from the books and handed to shareholders.

The importance of balance sheet net cash is often overlooked in the valuation equation as most investors rely on multiple analysis such as comparing the price-to-earnings ratio to historical measures or to a company’s peers or competitors. Some investors aren’t paying attention to cash-flow and balance-sheet dynamics, which is why some may not completely understand the mechanics of dividend payments on valuation. Though interest paid and interest earned are theoretically factored into accounting earnings, the impact of such dynamics has been relatively muted in an environment of ultra-low interest rates.

But as interest rates rise, and they inevitably will, the net cash or net debt position of a firm can have a profound impact on the company’s future accounting earnings. For example, firms will be able to invest balance-sheet cash at higher rates, or in net-debt situations, where the majority of debt is floating-rate, companies will have to foot a higher interest bill. One is good for accounting earnings, the other potentially bad.

The list below includes stocks that have some of the largest net cash positions relative to their respective market capitalization. It showcases firms where a large portion of their intrinsic value rests on the balance sheet. Some have well over 40% of their intrinsic value generated right from tangible net cash. Those on this list can also be viewed as potential targets for activist investors, while the large net cash positions could also make them acquirers, one-time dividend payers, share buyback candidates, or offer enough dry powder to execute a turnaround.

Though evaluating the balance sheet may be a somewhat boring proposition for some, these stocks will be anything but as they eventually put their cash to use.

Note: The net cash position is total cash and marketable securities less short and long-term debt. Data retrieved from the latest annual filing, or latest quarterly filing, where asterisked. Market capitalization is the market capitalization of the firm at the time of this writing.

Honorable Mentions 

a) QLogic Corp. (QLGC) 

Net Cash Position: $278.03

Market Cap: $1.33 billion

Net Cash to Market Cap: 20.9%

b) Insperity (NSP)

Net Cash Position: $349.1 million

Market Cap: $1.34 billion

Net Cash to Market Cap: 26.1%

15) Form Factor (FORM)

Net Cash Position: $163.83 million

Market Cap: $537.24 million

Net Cash to Market Cap: 30.5%

14) Vishay Intertech (VSH)

Net Cash Position: $652 million

Market Cap: $2.05 billion

Net Cash to Market Cap: 31.8%

13) Overstock (OSTK)

Net Cash Position: $182.22

Market Cap: $572.9 million

Net Cash to Market Cap: 31.8%

12) News Corp (NWSA)

Net Cash Position: $3.15 billion

Market Cap: $9.74 billion

Net Cash to Market Cap: 32.3%

11) Bebe Stores (BEBE)

Net Cash Position: $100.67 million

Market Cap: $303.33 million

Net Cash to Market Cap: 33.2%

10) Apollo Group (APOL)

Net Cash Position: $1.07 billion

Market Cap: $3.05 billion

Net Cash to Market Cap: 35.1%

9) Travelzoo (TZOO)

Net Cash Position: $54.8 million

Market Cap: $151.9 million

Net Cash to Market Cap: 36.1%

8) AVX Corp (AVX)

Net Cash Position: $899.3 million*

Market Cap: $2.46 billion

Net Cash to Market Cap: 36.6%

7) Rosetta Stone (RST)

Net Cash Position: $64.66 million

Market Cap: $165.46 million

Net Cash to Market Cap: 39.1%

6) Electro Scientific (ESIO)

Net Cash Position: $79.63 million*

Market Cap: $198.8 million

Net Cash to Market Cap: 40.1%

5) Aeropostale (ARO)

Net Cash Position: $109.2 million*

Market Cap: $259.53 million

Net Cash to Market Cap: 42.1%

4) KBR (KBR)

Net Cash Position: $970 million

Market Cap: $2.1 billion

Net Cash to Market Cap: 46.2%

3) Zynga (ZNGA)

Net Cash Position: $1.196 billion

Market Cap: $2.58 billion

Net Cash to Market Cap: 46.4%

2) TAT Tech (TATT)

Net Cash Position: $27.98 million

Market Cap: $59.6 million

Net Cash to Market Cap: 46.9%

1) Career Education (CECO)

Net Cash Position: $229.6 million

Market Cap: $347.1 million

Net Cash to Market Cap: 66.1%

Note: Yahoo (YHOO) and ADP (ADP) have been excluded from the list due to the well-documented Alibaba (BABA) stake and ‘funds held for clients,’ respectively.

Image Source: 401(K) 2012