Friday, November 21, 2008

Debt Free Stocks Selling At or Near Cash

If a stock is trading at the amount of cash it has, it is a pretty good buy. And if the company is debt free, it would seem that there is almost no downside. came up with over a dozen stocks that are trading at or near cash, as measured by the Price to Cash Ratio, all with market caps over $500 million, and all without any debt.

For example, optionsXpress Holdings, Inc. (OXPS) has no dept, trades for around 11.50 per share, and has $9 per share in cash. Not only that, they have a forward yield of 7.5 and pay a yield of 2.5%.

Another example is KBR, Inc. (KBR), another no debt company, which trades for 9.86 per share with 6.87 in cash per share. The have a forward PE of 5.5 and pay a yield of 1.7%.

It's nice to find debt free companies with very reasonable ratios. The rest of the debt free stocks selling at or near cash can be four at

Author does not own any of the above.


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