PlanetOut Inc. (LGBT) is a great example of the devastation of today's stock market.

At the end of September, LGBT had 8.2 million in CASH and very little debt.  They had approximately 4 million in accrued liabilities.

Gay.com is their main website and it is safe to say that the domain name itself is worth 3 million.  So lets put that all together: we get 8 minus 4 plus 3 equals 7 million.

Yet, lately, shares have been trading lightly at a market cap of 1.5 million.

Let me say that again: 7 million in liquidation value trading at a market value of 1.5M.  So for .35 you get $1.75.  There is a catch.

The catch is that they are probably losing .35 cash a quarter.  And obviously at that rate, they will be in debt in a year and a half.  They insist that they are close to at least break even, but one needs to assume that will be more difficult in this environment with reduced advertising revenue.

The CEO and executive team are overpaid and all need significant pay cuts.  General and administrative are the biggest expenses.

What is surprising is that someone or some group hasn't yet swept in and bought a majority stake to just force a liquidation and make a quick few million.  It's an example of how a lack of investor organization can allow an executive team to suck a company dry.  It's a potential tragedy not just for the shareholders, but also for the employees.

The stock, meanwhile, is a strong buy.. that is, if you have faith in someone taking advantage of the situation.  The risk is that there are so many dire situations out there, that this one - with the stigma of being a homosexual community company - will get lost in the crowd.  We'll find out.