A couple of weeks ago, The Motley Fool reported on an ASX share that had fallen in price so much that 77% of its valuation was now the cash it holds.
That tip about Touch Ventures Ltd (ASX: TVL), which came from Cyan Investment Management portfolio manager Dean Fergie, attracted tremendous interest from our readers.
"This stock's gone from a listing price of 40 cents back to, it's currently trading at, 13 cents," Fergie told The Motley Fool last month.
"They have, in net cash, 10 cents per share on their balance sheet."
This week another expert named a different stock in a similar position, which may also pique the interest of keen investors:
Image source: Getty Images
'The lines are big and the pizzas are expensive'
Wilson Asset Management senior analyst Shaun Weick rated entertainment venue operator Event Hospitality and Entertainment Ltd (ASX: EVT) as a current buy.
"This stock does provide strong leverage to the [post-COVID] reopening themes," he said in a Wilson video.
"They own a collection of cinema assets in Event, hotel assets in QT and Ridges."
The company also operates the Thredbo ski resort.
"If anyone's seen images of Thredbo recently, the lines are big and the pizzas are expensive."
Current share price giving away the business pretty much for free
As well as increased business from cooped-up Australians coming out of their shells, Weick's team likes Event shares as a "valuation play".
"If you back out the implied value of the operating businesses at the moment, you're paying roughly two to three times EBITDA — for businesses that we think can earn significantly more coming out of COVID."
But the best feature is that the real estate it owns makes 87% of the current share price.
"They've got $2 billion property assets on the balance sheet — current market cap's $2.3 billion," he said.
"We think this one's a good play in this market."
Coverage is sparse for Event Hospitality and Entertainment. But three out of four analysts surveyed on CMC Markets currently agree with Weick, rating it as a buy.
The company is due to report its financials on 22 August.
