Monday, October 20, 2008

>Cash Rich Companies

Analysts at Société Générale are anticipating an increase in corporate mergers and acquisitions activity even amid the turmoil in the global markets, with companies using funds on their balance sheets to take advantage of targets’ low share prices.These firms have low share prices but plenty of cash on their books
Below table shows companies with low market cap than cash on books.



Companies with a strong net-cash position are in a position to benefit from greater visibility on the global economic situation and attractive valuations.

The Société Générale research said: “For those prepared to look through the haze, interesting opportunities may present themselves. Indeed, as access to capital tightens, competition for assets from competitors should dissipate and prices may fall.”

Regards
Rish

7 comments:

drk_411 said...

Maruti is very cash rich. Approx 4000 Crores.

Rish said...

Fine Maruti coming up with two new cars this yr end that should add up value in their products:).

Ravi Pathak said...

Hi Rohit,

Looking at the only cash vs. Market cap doesnt serve great purpose. I guess you are trying out grahamian net net cash bargains. If thats the case, I think it might be helpful to look at the net cash. I.e. cash - current liab - debt. This actually reflects the true picture and if this no.of greater than market value, you have got a bargain for yourself !

my 2 cents

Rish said...

True Ravi, If you can get such list that would be helpfull.

Dinesh said...

Hi,

Jus curious - is Bharat Hotels listed? i think it got delisted 3-4 years back .. but the list shows its stock price as of 16 oct ... !! kindly check the source of this list !!

monu said...

Dear Rish sir,

Thank you very much for write, inspiring and very useful guide to your reader. Your selfless service is immeasurably valuable. Its a guiding light to every reader of yours. Thank you again..

With Regards

Anonymous said...

IndiaBullsRealEstate has 2000Cr net cash it gives 76Rs per share. and most of the bad news is over for realty, i think its a good bet for 3-5 Years.
Suggestions ivited.
Thanks for the info,Rish.

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