Is Your Company Hoarding Too Much Cash For You? - Part 2

Someone said this in his blog:
Are my initial reasons for holding on to these stocks like: Huge cash reserves?

There is a saying: An Idiot and his money will soon part. Similarly, I will say: A Dumb CEO and the Company's huge cash reserves will soon part.

We may need to understand the perspective of CASH in a corporate environment. Cash is a just an instrument for the company for the purpose to:

• fund day-to-day expenses or in another word to manage a healthy cash flow.

• serve as cushion during bad times

• deploy excess cash as capital efficiently and effectively to fund future growth and to generate more cash.

Can investing be made so simple by just looking at a company's huge cash reserve? I wish too.


http://createwealth8888.blogspot.com/2009/10/is-your-company-hoarding-too-much-cash.html


Do you still see huge cash hoarding as a buy signal?