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Cash Rich Tech Surprises

Posted Dec 02, 2008 08:58am EST by Sarah Lacy in Investing, Semiconductors, Software and Services, Recession
Goldman Sachs released a list of 16 cash-rich tech stocks with solid fundamentals, and there were some surprises. No Microsoft, Oracle, Cisco, or Google.

The only household name featured was Apple, with 30 percent of its market cap in cash and Nvidia, with 41 percent of its market cap in cash. Instead the list was dominated by semiconductor and hardware companies, without a single web name and only one software stock, Red Hat.

What gives? In the wake of the ongoing credit crisis, Goldman Sachs is evaluating tech stocks differently, valuing cash and stability over growth, says my guest, investor and blogger Paul Kedrosky. Does the strategy make sense? In the short term, yes, says Kedrosky. But longer term, the Goldman list unveils a trove of juicy acquisition targets.

[Disclosure: Kedrosky owns Nvidia, but none of the other stocks mentioned in Goldman's recent list of 16 cash-rich tech equities.]

31 Comments

- Tuesday December 02, 2008 09:08AM EST

IGNORE FOR A WHILE UNTIL THE MARKET SETTLE........

- Tuesday December 02, 2008 09:08AM EST

How wierd? Things have changed much.

- Tuesday December 02, 2008 09:19AM EST

So what about some jail time for the thieves who stole all the money? Also when do we raise taxes above 35% for super wealthy? Come on everytime in history Uncle Sam was broke we taxes in the 90% range for ungodly wealthy to pay their fair share. Everytime the republicans have convinced the public to reduce taxes on the rich we have had a recession or depression! It is time to pony up for the free ride you took on the backs of Americans. Doctors go to school a long time and they don't make anywhere near what the average CEO makes. America wake up and take back what they never should have gotten!

Yahoo! Finance User
Yahoo! Finance User - Tuesday December 02, 2008 09:41AM EST

How could it possibly be fair to tax just the super wealthy? Why not just a flat tax? That way everybody pays their fair share, and the super wealthy still pay much much more than the middle class.

- Tuesday December 02, 2008 09:41AM EST

Has Obama started with the re-distribution early?

- Tuesday December 02, 2008 09:44AM EST

who is Goldman?

- Tuesday December 02, 2008 10:03AM EST

I AGREE J K......Just a bunch of IDIOTS thinking we'll buy into their game of what they say is best!

- Tuesday December 02, 2008 10:06AM EST

I agree with JK.

- Tuesday December 02, 2008 10:13AM EST

If sarah lost 20 pounds she would be really hot, and although paul is a handsome guy...what's with his hair?

Yahoo! Finance User
Yahoo! Finance User - Tuesday December 02, 2008 10:14AM EST

Folks stay away from stocks. I am an average Joe who fell for the bottom 2 months back and i am now down 30% on a very diverse portfolio.

- Tuesday December 02, 2008 10:15AM EST

what you guys think about apple and icicibank

- Tuesday December 02, 2008 10:17AM EST

Love Tech Ticker. But there is nothing worse than clicking on one of these videos, thinking you are going to get a good report, and then being confronted by the grating voice of Sarah Lacy, bouncing in her chair and throwing her left ear at the camera. Can't hit Pause on the video fast enough. Shudder.

- Tuesday December 02, 2008 10:21AM EST

JT I agree with you too

- Tuesday December 02, 2008 10:23AM EST

I say no bailouts until all Corporate Board of Directors make Golden Parachutes,Exorbitant Pay Raises, AND Bonuses a thing of the past. How ridiculous for CEO's to get a bonus when their company is losing money. It's simply stealing from shareholders and they should all be held accountable by requiring they return any money acquired as bonuses when their company showed no profit.

- Tuesday December 02, 2008 10:31AM EST

what about ADSK? Almost $1 Billionin Cash with Market Cap of 3.4 Billion. 30% cash is a pretty good position.

- Tuesday December 02, 2008 10:32AM EST

It is fair to tax the super wealthy at 90% because it is not a real earned income it is stolen from the backs of others, IE: CEO's making 300X more then employees. Besides it is simply a progressive tax the same tax the super rich think is fair for me to pay! I pay MUCH more of my income left in taxes then the rich, IE: I earn 80 K live modestly on 40K and get taxed 40K Super rich guy earns 40 Million pays 35% in taxes and swims in cash after paying moderate living expenses, fair is fair!

- Tuesday December 02, 2008 10:36AM EST

jsk1patel, stay away from ALL banks until 2010.

Yahoo! Finance User
Yahoo! Finance User - Tuesday December 02, 2008 10:47AM EST

Flat tax is really fair and less expensive administratively .. no shelters.. no loopholes..no BS.. and it probably won't ever be instituted! GS is just looking for anything to buy in this bad environment!

- Tuesday December 02, 2008 10:56AM EST

mogleytheman - The sure way to create 25% unemployment and a massive depression is to raise any tax to 90%. Personally I like having a job and living in a safe prosperities county. From your comments I guess you don’t.

- Tuesday December 02, 2008 11:04AM EST

they should be more focused on their own company.

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