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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Graham Osborn who wrote (56802)	2/2/2016 10:56:30 AM
From: E_K_S	Read Replies (4) \| Respond to of 78764

Re: Companies w/ hoards of cash GM, PFE, MRK, CSCO and GOOG were some of the other companies w/ hoards of cash. U.S. nonfinancial companies held $1.82 trillion of cash at the end of 2014, but only 25 companies held almost half that money. This top tier included technology, pharmaceutical and industrial giants such as Apple Inc., Pfizer Inc., and General MotorsCo. Cash among the top 25 grew 11% last year, S&P said, while the holdings among the remaining 1,975 or so corporations didn’t fare as well, said Andrew Chang, a credit analyst at S&P. ----------------------------------------------- Isn't it interesting that GM also went through a pre-packaged BK where they were able restructure all of their un-funded pension liabilities. Now they are at the top of the list of companies w/ the most cash. General Motors isn't required to put cash into its underfunded pension plan for a few years, and management has noted it doesn't intend to make any discretionary payments. Because of that, General Motors' global pension fund was underfunded by a staggering $24 billion at the end of 2014 -- which is $4.3 billion worse than at the end of 2013. (NOTE: This is still in litigation as UAW wants GM to fund these liabilities with some of that cash they have) In a negative interest rate environment, Cash is a growth asset (in a deflationary environment it can buy future assets at a lower price). Maybe that is the 'new' value metric. EKS