The gut-wrenching dive in financial markets raises a key question: Which stocks are likely to emerge out of this credit crunch-induced bear market as winners? Logic would suggest that firms with large amounts of net cash (defined as cash plus short-term investments minus debt) will dominate those struggling to meet their financial needs. As a result, we highlight potential winners based on this premise (shown below). More specifically, these companies are firms who rank as Strong Buys by Super Stock Screener’s Ranking System and have large amounts of cash on their balance sheets:

*Defined as cash & equivalents + short-term investments – total liabilities

Data as of Oct 24th, 2008

Happy trading.

Disclosure: No positions at the time of writing.

No related posts.