SourceForge: Undervalued Open-Source Stock

SourceForge (LNUX) is a small internet company that had a wild beginning. At the height of the internet bubble, its stock, like fellow Linux stock Red Hat, soared to insanely high values, peaking at over 400 per share. But the company’s current price is too low, and opportunities abound.

The first thing you need to know about the company, now trading around $1.35, is that it is sitting on about a dollar a share in net cash and other hard assets, and has no long-term debt. The second thing is that it has turned a profit for 9 of the past 10 quarters. The third thing is that it owns a number of high-traffic websites, including Slashdot, Linux.com, Unix and Palm software site freshmeat.net, online retailer ThinkGeek.com, and SourceForge.Net, the home page for a large number of open source software projects.