If you feel more comfortable knowing that your stocks have very high amounts of cash relative to their annual operating expenses, this list may interest you.
We ran a screen on stocks from the tech sector for those that have at least 5 times the cash holdings compared to their last year’s operating expenses. Assuming expenses do not change, these companies can theoretically operate for at least 5 more years without generating additional cash.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 (SPY) index over the last month.
List sorted by market cap.
1. Giant Interactive Group, Inc. (GA): Business Services Industry. Market cap of $1.81B. MRQ cash at $961.21M vs. last year operating expenses at $98.83M. The stock has had a couple of great days, gaining 7.8% over the last week.
2. Universal Display Corp. (PANL): Computer Peripherals Industry. Market cap of $1.27B. MRQ cash at $324.93M vs. last year operating expenses at $40.77M. The stock is currently stuck in a downtrend, trading 6.12% below its SMA20, 17.81% below its SMA50, and 25.45% below its SMA200. The stock has performed poorly over the last month, losing 17.5%.
3. VirnetX Holding Corp (VHC): Internet Software & Services Industry. Market cap of $983.56M. MRQ cash at $43.55M vs. last year operating expenses at -$104.62M. This is a risky stock that is significantly more volatile than the overall market (beta = 2.12). It's been a rough couple of days for the stock, losing 31.99% over the last week.
*Cash and operating expenses data sourced from Screener.co, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.