Wednesday, May 30, 2012

5 Cash Hoarding Consumer Stocks Commanding Profits


Are you interested in consumer stocks, especially those with strong profit margins? Well, what if a company's profits are not matched by cash reserves to pay the bills? A profitable company that can't handle its bills today doesn't have to worry about the problems of tomorrow - because it might no be around for that much longer. Further, how is a company without cash on hand supposed to make strategic investments or acquisitions? A profitable company without liquidity can turn into a real dud in the long run. That said, today we screened for profitable consumer stocks that also have plenty of cash.Return on Equity [ROE] is one way to identify great potential names relative to profitability. This ratio illustrates the percentage return on shareholder equity. As well, this metric segments the company into operational efficiency, asset use efficiency, and financial leverage. Why does this matter? Simply put, it
... Read the rest at SeekingAlpha.com

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