CNBC Stock Blog
- Avis on the Road to Strong Growth: Analyst
- LinkedIn’s Growth Is Already Priced In: Analyst
- The Real Reason Behind Bank of America’s Rally
- 5 Hedge Funds’ Top Stocks Soar After 2011 Rout
- Bulls Check In to Community Health
- Bank of America’s Worst-Case Scenario Gets More Real
- Mulling Buffett's Stock Advice? Get in With REITs: Fund Managers
- So Now You Can’t Give Microsoft Away?
ABOUT THE CNBC STOCK BLOG
RSS FEED
CNBC EXPLAINS
Why Strategist Is 'Worried' by Debt-Free Firms
Text Size 
CNBC.com Writer
Large debt loads can weigh on a company's balance sheets, but a firm not having debt doesn’t necessarily mean it’s a money-making business. So are debt-free companies good investments right now? Doug Sandler, co-founder of Riverfront Investment Group, discussed his insights.
“It’s like a mortgage on the house—it’s not stupid to have a mortgage just because you go in debt,” Sandler told CNBC.
“So for the companies with no debt, what I’d be worried about is that it also has languishing growth.”
Companies should think about levering up and amplifying returns or investing in their business—before someone else comes in and takes that business from them, explained Sandler.
“Huge debt is obviously a bad thing, but I wouldn’t restrict my shopping list to strictly companies with no debt,” he said.
Top Companies With Zero Debt:
Google [GOOG
Loading...
()
]
Apple [AAPL
Loading...
()
]
Forest Laboratories [FRX
Loading...
()
]
Celgene [CELG
Loading...
()
]
______________________________
Scorecard—What They Said:
- Sandler's Previous Appearance on CNBC (Jun. 30, 2010)
- Yoshikami's Previous Appearance on CNBC (Jul. 12, 2010)
CNBC Slideshows:
______________________________
More Market Views:
- This Trading Range Will Break Higher: Stock Picker
- Market Bias Is to Upside—So Invest Here: CIO
- Stock Picker: Plan for 'a Lot of Market Action'
______________________________
CNBC Data Pages:
______________________________
______________________________
Disclosures:
No immediate information was available for Sandler or Yoshikami.
______________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes
