I like cash-rich companies — especially if they’re profitable. A cash cushion means the company shouldn’t be overwhelmed by debt in the near future, and it also reduces the chances of a dilutive share issue at a bargain price.
Dmatek (LSE: DTK), an Israeli electronic tagging company, is just such a business. It’s just announced a decent first-half profit, and has a net cash pile of $18.1m (£9.7m). That’s a strikingly large figure for a £28.6m company. The company also operates in two interesting growth markets. But is the business growing fast enough?…