The Disciplined Investor: Black Friday Bargains

---

Radvision (RVSN - commentary - Cramer's Take) is a small Israel-based developer of Internet video conferencing hardware and software. The company is a prime supplier to Cisco (CSCO - commentary - Cramer's Take), which accounts for 30% of its revenue. The stock is currently $6.87, and the company has $6.00 in cash.

Click here for larger image.

Although Radvison showed a loss last quarter and projected another small one for the fourth quarter, the company is actually cash flow positive on an operating basis, once you remove depreciation and stock-based compensation.

An investor must have confidence that the telecom equipment market won't collapse, but if it doesn't, you are paying $17 million for a company generating $80 million a year in sales with strong customer relationships.

---

Cogo Group (COGO - commentary - Cramer's Take), a Shenzen-based contract manufacturer that serves the mobile handset group and other technology industries, is perhaps the most compelling story of all. The stock is trading at $3.28, with $3.00 of net cash on the balance sheet.

Click here for larger image.

In the company's quarterly report on Nov. 6, Cogo posted a profitable quarter, with over 30% revenue growth. The company has cut prices to gain market share, so profit was down year over year, but, with an outlook for revenue growth and ability to remain profitable, there appears to be little risk in buying the stock essentially at cash value.

My colleague Paul Meeks is an expert on the company and a contributor to this site, so I've asked him to do a more detailed post on Cogo. Keep an eye out for that.

---

At the time of publication, Dvorchak was long CryptoLogic and Cogo Group, although positions can change at any time.

Gary Dvorchak is a managing partner of Aviance Capital Management, a Sarasota, Fla.-based institutional asset manager that manages $200 million in growth and value equities and fixed income. Dvorchak holds a master's degree in business administration from Northwestern University and a bachelor's degree in computer science from the University of Iowa.