Cash rich and undervalued

This particular capital return process is timely right now because one of the companies I have recommended this year, solar-wafer manufacturer PV Crystalox Solar (PVCS: 15p), has just returned 7.25p a share. As part of the capital return process, PV Crystalox Solar has consolidated its share capital with shareholders receiving five new shares for every 13 currently held. What this means is that post the capital return of £30.2m and share consolidation, PV Crystalox Solar now has 160m shares in issue and a market value of £24m. It also means that I have to decide whether it is still worth holding the shares.