Linktone, Ltd. (LTON) is everything mobile in China.  They have a wide range of content and services they sell to other Chinese telecom companies and the general public.  They provide “stuff” like ringtones and screen savers, streaming sports content , entertainment and music, games….you name it. ( see LTON weblink)

They are worth taking a look at for the following reason…..their cash per share ($2.41) is significantly higher than its most recent share price ($1.42) with NO DEBT.  I do believe that balance sheets matter with companies in this niche.

On the revenues side, LTON continues to grow top line revenues and are seeing minor profitability.  According to the company, they are on track to post positive operating results for the next three Q’s.

What also got my attention was the chart:

I would definitely put LTON on your small cap/penny stock radar.   I am expecting good news from the company which could have a positive impact on the company.  The company’s financial strength will give it the time it needs to execute on its plan.  Even if they get acquired, that wouldn’t hurt the company…..expect a huge premium over their cash-in-the-bank.

Good trading,

Jeffrey Dean, Editor-in-chief