Buy This Mid-Sized Biotech

Here's why biotech QLT offers such an interesting investment opportunity.
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To say we are in a market of historical dislocations is to state the obvious these days. Due to massive deleveraging across all asset classes, interesting short- and long-term opportunities are being created, particularly in the mid- and small-cap arena.

One interesting dislocation occurs between a company's market capitalization, or the total shares outstanding multiplied by the current price per share, and the associated net cash on that company's balance sheet.

Take, for example,

QLT

(QLTI.)

.

Currently, QLT, which closed on Tuesday at $1.82, has a market cap of $135.8 million and 74.6 million shares outstanding.

But QLT has $155.95 million in cash sitting on its balance sheet! With that market cap, that amount of cash and zero debt, QLT is trading with a negative

enterprise value

of $8.2 million. And companies with negative EVs are always worth looking at.

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visit Stockpickr.com

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