Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (87979)	3/14/2012 4:20:39 PM
From: Brian Sullivan	1 Recommendation Respond to of 217549

U.S. Companies Sitting On $1.24 Trillion Cash Hoard By Michael Aneiro U.S. corporations are awash in cash, and the biggest companies are growing their cash piles faster than the rest. U.S. non-financial corporate cash holdings rose to $1.24 trillion at the end of 2011, Moody’s Investors Service said Wednesday. The top five “cash kings” Moody’s cites are Apple Inc. ( AAPL), Microsoft Corp. ( MSFT), Cisco Systems Inc. ( CSCO), Google Inc. ( GOOG) and Pfizer Inc. ( PFE), which together hold $276 billion, or 22% ,of the total non-financial corporate cash balances. That’s up from $207 billion, representing 17% of the total, a year earlier. The top 50 holders of cash account for $749 billion, up 13% from $665 billion in 2010. Unless Apple implements a first-time dividend or starts to buyback stock, Moody’s says Apple’s $97 billion cash pile—which represents about 8% of total corporate cash—could grow to $150 billion, or 12%, by the end of 2012. The rating agency estimates that nearly $700 billion, or 57% of the corporate cash total, is held overseas. Quoth Moody’s: This amount reflects the strength of most emerging-market economies over the last few years, the negative tax consequences of repatriating cash to the US and the disproportionate use of cash for US dividends, share buybacks and acquisitions. Without permanent reform that lowers the tax on overseas profits, Moody’s expects the absolute and proportionate amount of cash held overseas will continue to rise. Thanks to record low interest rates, corporations have been able to issue record amounts of debt in the last couple of years, but the recession has crimped the ways that companies have been willing to deploy their cash. Moody’s said it expects overall business conditions to remain modest over the next year and expects companies to continue to use cash for shareholderdividends, share buybacks and acquisition activity, although corporate spending on buybacks and acquisitions will be modestly lower at roughly $400 billion in 2012. Higher spending on such items is associated with solid macroeconomic activity and strong business confidence. Other cash-rich sectors include pharmaceuticals which held around $183 billion at year-end 2011. with Pfizer, Johnson & Johnson ( JNJ) and Amgen Inc. ( AMGN) holding the largest cash piles. The energy sector held $114 billion, with Chevron Corp. ( CVX), Exxon Mobil Corp. ( XOM) and ConocoPhillips ( COP) sitting on substantial balances, says Moody’s. Investment-grade companies rated by Moody’s hold $848 billion of cash, or 77% of the rated non-financial corporate universe, down slightly from $852 billion in 2010 but up from $579 billion in 2006. blogs.barrons.com