Your right --but the combination of cash and earnings / earnings potential makes this company attractive. - In this down environment cash is king. - Now trading close to the cash on hand - You could sell the whole company in a rummage sale / fire sale and still come out ahead. - Or the cash could be used to make "fire sale purchases" of other beaten down undervalued companies that would better psoition NTE for strong earnings once things turnaround __AND THEY WILL turnaround.
That is the whole point of value investing! You don't know what will happen to make things go higher, but something will. This means they get bought out, buy another firm with their cash to increase future earnings, spend the cash to improve their processes and margins, pay out a special dividend without changing the earnings power of the firm, etc.