Are stocks with lots of cash and low debt your best bet as economic trouble looms?
Cash on the books is so important, says Karen Finerman, because I think investors should select companies that have the financial strength not only to survive but thrive in this tough environment.
Following are the companies Finerman thinks are good vs. those that are not good.
Balance Sheet Breakdown
Office Depot (ODP) - Good
Net Debt $450mln -- Sales: $15.5 Bln
Office Max (OMX) - Not Good
Net Debt $1.7bln -- Sales: $9.1bln
M.D.C. Holdings (MDC) – Good
Net Debt $270 Mln -- Sales: $2.5 Bln
Lennar (LEN) – Not Good
Net Debt $2.4bln -- Sales: $12.2bln
Really Cash Rich Companies
American Eagle (AEO) – Really Good
Net cash $650mln