CCA Industries (CAW) a Buy at Current Levels

CCA Industries, Inc. (CAW) seems a buy at current levels. The company manufactures and sells health and beauty aids throughout North America. Products include Mega-T weight loss pills, Nutra-Nail nail enhancers, and Plus White tooth whiteners.

The balance sheet sports $14M in cash, no debt, with a $27M market cap. Book value is $3.97/share, which is almost the price per share of $3.88/share. No goodwill is recorded on the books; therefore the tangible price to book is roughly 1.0. In addition the stock does have a 7% dividend yield, which is sustainable in the short term, but will most likely have to be cut within a year or two.

Drawbacks include a steep decrease in profits in 2008 versus prior years and Wal-Mart (WMT) announcing they would stop selling CCA products. The affect of this has largely been absorbed in the latest quarter.

The majority owners rejected a takeover bid of over $10 in 2007, and they are nearing retirement age. Without their large salaries as an expense the company should be worth more.