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If These Stocks Were ‘Bargains’ Last Week…
By JLP | October 10, 2008
What are they now?
This article ($) was published in this week’s Barron’s, which arrived in my mailbox last Saturday:
WITH CREDIT TIGHT AND GROWING TIGHTER, companies that generate lots of cash are looking as inviting as Noah’s ship in the storm. “In times of stress like today, when you can’t access capital, self-financing is crucial,” says Michael Mauboussin, chief investment strategist at Legg Mason Capital Management.
With those words in mind, Barron’s set out to identify 25 cash cows — U.S.-based companies that produce ample amounts of the green stuff, boast stock-market values of at least $10 billion, and have long-term debt-to-capital ratios well below the Standard & Poor’s 500 average near 35%. We also screened for profit margins greater than those of the S&P; dividend yields of at least 0.5%; and 2009 estimated earnings that exceed expected results for 2008.
Here is the list they came up with:
Now, here’s that same list updated with the latest prices:
What a difference a few days make! Of course the earnings of these companies could be affected by a recession or downturn so they are far from being risk free—as we’ve seen from their drops this week. But, if Barron’s thought they were worth looking at last week, then they are REALLY worth looking at now. I just wish I had lots of extra money to invest.
Topics: Investing |
October 12th, 2008 at 9:34 pm
Very interesting. I think now may be a great time to invest, but of course, a few more days could lead to more losses as well.
I’ve got a little extra cash to invest, so I’m looking into a few things now.