Hope folks are having a better day than I am. Keep zigging when I should be zagging.
Earning season is over and here are the final stats for the quarter. 65.8% beat earnings estimates – 63% beat revenue estimates.
Tagged: earnings RSS
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Teresa Lo
Earnings Solid, So Why Won’t Companies Part With Cash?
Jeff Cox from CNBC asked the question yesterday:
Even amid the trumpeting of an economic recovery and the resurgence of the stock market, companies reporting earnings are showing a strong reticence to part with the cash stowed away in their coffers.
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“Investors are simply favoring those companies where corporate treasurers understand the importance of liquidity, particularly in a period of declining inflation and in my judgment rising deflationary expectations,” said Bob Andres, CIO and wealth strategist for Merion Wealth Partners in King of Prussia, Pa. “Maybe they’re simply saying cash is king and holding cash is acting responsibly.”
Corporations are holding about $1.8 trillion on their balance sheets, money that has swelled as the US has weathered its worst downturn since the Great Depression.
There’s more to this story, and that’s why I crunched the numbers for members last week in How to Profit from the New Sovereigns.
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John
I have a pretty large cash position too. Last I looked it was close to 15%.
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ArlingtonJB 7:04 PM on August 19, 2010 Permalink | Log in to Reply
Looks like this report jumped the gun – HP and Dell reported after the close.