During A Credit Crunch, Cash Is King!
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:
Ticker
Company Name
$Net Cash*
(in millions)
Rank
BEN
Franklin Resources, Inc.
1,951
Strong Buy
CSCO
Cisco Systems, Inc.
1,854
Strong Buy
FRX
Forest Laboratories, Inc.
980.8
Strong Buy
YHOO
Yahoo! Inc.
907.5
Strong Buy
JNPR
Juniper Networks, Inc.
806.1
Strong Buy
FDRY
Foundry Networks, Inc.
740.5
Strong Buy
ADBE
Adobe Systems Inc.
733.6
Strong Buy
TLAB
Tellabs, Inc.
705.6
Strong Buy
ADI
Analog Devices, Inc.
579.6
Strong Buy
ADPT
Adaptec, Inc.
317
Strong Buy
MYGN
Myriad Genetics, Inc.
255
Strong Buy
ELX
Emulex Corp.
203.3
Strong Buy
AMCC
Applied Micro Circuits Corp.
144.7
Strong Buy
CGNX
Cognex Corp.
140.2
Strong Buy
EBAY
eBay Inc.
97.3
Strong Buy
*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.
Tags: credit crunch
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