Alan Brochstein

Five Cash-Rich Companies Worth a Look

I have ASF in both of my model portfolio. While I don't believe that it's cash position is as good as it looks, the balance sheet is still strong and the valuation ok. The problem is that they are facing some big headwinds. I listened to the call earlier this year, and they THINK they are being conservative. I sure hope so!


On Apr 10 01:06 PM Ryan Vanzo wrote:

> Rex & LoveShorting: Although I am more of a long-term investor,
> FMCN could be a great trade for the short-term as well as long-term.
> In this environment, stocks that are being involved in mergers/buyouts
> usually have their downsides limited because although there will
> be room for risk arbitrage, they usually don't stray too far from
> their buyout price.
>
> BHarper: I love BBSI, it happens to be a Motley Fool pick as well.
> Short-term, things could get volatile, long-term, I think it's a
> winner.
>
> Alan: Thanks for your input yet again. Although ASF does have considerable
> liabilities, I think these liabilities have been priced in already
> and shouldn't be much of a problem, but I think there are stocks
> that don't have these problems, such as the other stocks I have listed.

Five Cash-Rich Companies Worth a Look

ASF cash is misleading, as is offset by two accruals (liabilities): Payroll taxes/deductions payable and payroll for its customers. These iems are prepaid by customers (cash) then dispersed. The total is $253mm. The net difference between all current assets and liabilities is just $75mm. When I am looking for "cash rich" companies, I try to find ones not encumbered by these large short-term liabilities. Your other names don't share this issue.

Time to Look At Conservative Growth Stocks

We have reduced our exposure to consumer discretionary by selling some LOW and COLM...

Small-Cap Growth: Analyst Coverage Discount?

That's a good point. I do tend to use high analyst ratings as a negative input, though WHQ didn't really have such strong opinion behind it. I think that there is a persistent investment arbitrage potential in buying the names that aren't so recognized and trading them out potentially when they become recognized.