Some Companies Selling At or Near Cash
Saturday January 3, 2009
I never thought I'd get to see it in my lifetime, but there are some companies that are trading at or below the cash they have in the bank. They aren't necessarily well known names, and they do have some risks, but you can literally get the business for free. It's unbelievable. Some analysts are whining that companies may have to cut their dividend, but who cares? If you think the enterprise is going to be a fantastic bargain five years from now, the lower cash flows shouldn't particularly matter to you unless you need the money to pay your bills (such as a retiree with a large income-oriented portfolio).
I also read a report that cash levels have reached the highest they've been since the crash of 1990. So, you have the greatest stock market slide in the S&P since 1938 according to the final year-end tally, and the largest level cash reserves in nearly 20 years. People are scared and have parked their liquidity in bills, bonds, and notes. That sounds promising to me. That's one of the reason we're rolling out new businesses - I want more and more funds to deploy into stocks. Forget a higher salary or nicer things - I want stocks. Lots of stocks.
But josh what if stocks say cheap for a long time..! I rather chase the (smart) money than find value. Yes, money will come back to good ol equities well i shall look at equities when it does come.Why should i park my money now..?
Is there tools that can search these type of company without going through balance sheet of hundreds of company?
How do I go about starting a 401k plan, my job does nothave this to offer.
Katherine,
The best way to start your own 401k is several ways. Start by buying your own individual stocks from (ShareBuilder)and keep building on them.Good companies such as JNJ and P&G. Another way, is to start investing into Mutual Funds at a low cost. Say, Tiaa-Cref or Vanguard. That’s what I am doing now, however my company does offer a 401 k plan but they don’t contribute. Good Luck,
David
Katherine,
Another alternative to a 401k is an IRA – Individual Reitrement Account.