One of those stocks that had been left for dead in the early 2000s was an Australian business called Queste Communications-- ticker symbol QUE.
Queste Communications developed an early version of Voice Over IP technology, similar to Skype.
And investors loved it. People stampeded into the stock when the company went public in 1999.
But the tech bubble burst only a few months later. Investors panicked and sold everything. And Queste’s stock price dropped a whopping 90%.
And that’s what caught my interest: despite the extreme drop in its stock price, Queste Communications still had a mountain of cash on its balance sheet.
To be even more specific, Queste had a bank balance of $35 million according to its annual financial report that year.
Yet the value of ALL of its shares after the stock price collapsed was just $10 million.
In other words, you could have theoretically bought every single share of Queste for $10 million, put the entire $35 million bank balance in your pocket, shut the company down, and walk away with a tidy $25 million profit.
For me this was a no-brainer: an opportunity to essentially buy CASH at a 70%+ discount.
So I bought as many shares as I could. And sure enough, barely three months later after investors’ fears had subsided, the stock price surged and I made six times my money.