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Chris B » Comments » ADBE

  • 20 Stocks with High Net Cash [View article]
    Then again, all that cash isn't earning anything. Don't get me wrong, cash is certainly necessary to have a stable business, but keep in mind that as an investor, you are buying that cash when you pay for shares, then you're covering payroll for a whole corporation to sit on it for you. If the money isn't spent to produce revenue, your investment loses value.

    I would ask exactly how these companies plan to use their cash to generate growth in the future. Will Apple invest in economies of scale to reduce the prices of their excellent computers? What is Google's plan to revolutionize how we retrieve INFORMATION, rather than just word matches from the Internet? Is Forest Laboratories going to raise their R&D budget?

    A big cash cushion might prevent a company from going bankrupt within the next couple of years, but only a solid business plan will prevent them from burning through all that cash and making losses. How much cash was GM sitting on 5 years ago?
    Apr 24 15:17 pm |Rating: +3 -2 |Link to Comment
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