It has been proven time and again that the market is uncertain, so how does a company prepare for shifts in the market? One was is to look at a company?s cash holdings relative to their average operating expenses.
To create this list we screened for US stocks with high yield dividends (above 5%). We then took the average operating expense of each company?s 4 previous market quarters and compared that with its cash holdings.
Cash/Average Operating Expenses translates into the number of quarters the company can survive without generating new revenues (while operating at average expense). Companies with more cash holdings than operating expenses may be less risky during business downturns (but do your own analysis to confirm).
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
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