Best cash rich companies

[Mr Cashflow]

After rapid rise in stock prices worldwide over the last 10 years at some point there are going to be some good bargains. Which cash rich, less debt companies should be first in our buying list?

[Minimoke]

Well, A2 Milk would have to be there. Zero debt. Approx $700m (don't quote me on that) in cash

[Iceman]

As you say worldwide, I think it's hard to go past the likes of Apple with cash of approx $ 202 B, Alphabet $ 170 B, Microsoft $ 132 B.
Outside of tech one can look at General Electric's $ 68 B, Pfizer $ 51 B or Coca Cola's $ 36 B.

That's a hell of a lot of cash.

[Minimoke]

As you say worldwide, I think it's hard to go past the likes of Apple with cash of approx $ 202 B, Alphabet $ 170 B, Microsoft $ 132 B.
Outside of tech one can look at General Electric's $ 68 B, Pfizer $ 51 B or Coca Cola's $ 36 B.

That's a hell of a lot of cash.

But they arent on the NZX. And investing in them creates a whole pile of additional tax issues.

[Iceman]

But they arent on the NZX. And investing in them creates a whole pile of additional tax issues.

[/b]

Tax issues only arise beyond $50k invested per person/entity, so not totally correct to say investing in them creates a pile of additional tax issues.

[Mr Slothbear]

Briscoes is definitely worth a mention with no debt and 102 million cash

[Benji]

As you say worldwide, I think it's hard to go past the likes of Apple with cash of approx $ 202 B, Alphabet $ 170 B, Microsoft $ 132 B.
Outside of tech one can look at General Electric's $ 68 B, Pfizer $ 51 B or Coca Cola's $ 36 B.

That's a hell of a lot of cash.

More important is cash as portion of market value, not total?

[Benji]

Briscoes is definitely worth a mention with no debt and 102 million cash

But own suppliers $81 million.
Maybe not quick to pay bills?

[nztx]

As you say worldwide, I think it's hard to go past the likes of Apple with cash of approx $ 202 B, Alphabet $ 170 B, Microsoft $ 132 B.
Outside of tech one can look at General Electric's $ 68 B, Pfizer $ 51 B or Coca Cola's $ 36 B.

That's a hell of a lot of cash.

More important is cash as portion of market value, not total?

Net enterprise value you mean ?

It's important what that cash is doing - ie translating effectively into bottomline..

A listed moneybox is after all only worth $1 or $1 with a few extra scraps for listed shell,
is it not ?

[Mr Cashflow]

Hi All, thanks for the replies.

[LaserEyeKiwi]

So really we want to be talking about companies with a large portion of their market cap as excess cash, and particularly ones that appear deeply undervalued based on likely long term earnings.

For instance I like MHJ (Michael Hill) - it holds cash somewhere in the region of a third of its share price, and is effectively trading at an "ex-cash" price to earnings ratio of somewhere between 3-4x.

(Their next trading update is about 3 weeks away)

[LaserEyeKiwi]

Also would add CDI (CDL Investments) with similar proportion of cash to total market cap as MHJ (cash equivalent to about one third of share price).

[Mr Cashflow]

Thanks for the replies.