Corporations With Cash Best Investment: Deutsche's Chadha
"Squawk Box" Co-Anchor
Corporations that are flush with cash represent the best buys for investors now, a Deutsche Bank banker told CNBC Monday.
“It’s basically one driver and two investable themes," said Binky Chadha, the bank’s chief US equity strategist.
“The driver is corporates that have very high operating cash flows and accumulated mountain of cash on their balance sheets. We see them under strong pressure to spend and pay out basically keep the cash mountains from growing. And so the two investable themes would be a basket of stocks that will benefit from corporate spend and the other is cash cows that the corporate will pay out.”
Chadha said his assessment is based on that fact that consumer spending is expected to show relatively sluggish growth of 2 percent to 3 percent over the next months.
Among those corporations that will be spending are Dover Corporation, Federal Express, United Airways, Boeing, Cisco, Net App, Google, Viacom, Staples and American Tower.
The case cows are: Directv, IAC/Interactive Corp, Kohls Corp, Panera Bread Company, General Dynamics, IBM, ConocoPhillips, Ball Corp, Magellan Health Services, and AT&T.