Currently, opinions are divided on whether or not the market is overvalued. However, one thing is for sure, stocks that conform to strict value investing criteria are becoming harder and harder to find. That said, there are still opportunities for profit, although these are often in the high risk, micro-cap. and penny share region of the market.

Value stocks

Attractive value stocks

So, here are three penny stocks that are either currently trading below their net asset values per share, or have cash rich balance sheets.

First Marblehead

The First Marblehead Corporation (NYSE:FMD) is essentially a finance company. The company offers education loans for K-12 graduate and undergraduate students in the US. First Marblehead also offers retail banking, portfolio management and securitization services. First Marblehead has a market capitalization of $111 million and an average daily volume of 1 million shares.

Unfortunately, The First Marblehead Corporation (NYSE:FMD) has not been profitable for the last four years. However, the company has no debt and $82 million in cash on its balance sheet. Overall, the company’s book value per share is $1.60, 62% away from current levels. Cash is worth around $0.70 per share, which puts somewhat of a base under the share price. Having said all of that, caution should be taken with First Marblehead as the company was a causality of the financial crisis and there are currently numerous lawsuits targeting the company.

AVEO Pharmaceuticals

AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) is a cancer therapeutics company with several treatments in early stage development. The company is behind the Human Response Platform a method of building models of cancer, which are then used to help in the clinical development of cancer therapeutics. AVEO has a market capitalization of $111 million and an average daily volume of 458,000.

At the end of fiscal Q2, AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) had $156 million in cash and short-term investments, $45 million more than its current market capitalization. That said, the company has a small ($24 million) pile of debt but this still indicates that the market is currently valuing AVEO at less than the value of the cash on its balance sheet.

Stanley Furniture

Lastly, Stanley Furniture Co. (NASDAQ:STLY) a producer, designer and seller of its own range of ‘timeless practical’ furniture. Stanley Furniture has a market capitalization of $52.4 million and an average daily volume of 83,500; so the stock is illiquid.

That said, Stanley Furniture Co. (NASDAQ:STLY) looks to offer value as the company’s stock currently trades below the book value of $5.47 per share, 52% below current levels. At the end of the third quarter, Stanly had no debt and $21 million in cash, which indicates that $1.45 of the current $3.61 stock price is cash and this should put a floor under any declines. What’s more, Stanley is in the process of restructuring and has cut costs during the past year. In addition, the company has boosted its cash balance year-to-date as it sold off some of its property portfolio, which is currently worth $47 million.