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Screener - Cash Rich Firms Screen

Quality

Performance

In a Nutshell

Find financially strong companies with the Cash Rich Firms Screen, focusing on firms with substantial cash reserves and quality metrics.
Risk Score
49
Estimated risk

Stock Picks

All you need to know about Cash Rich Firms Screen

Having lots of money in the bank is good for a business. It gives it more freedom and protection. Companies with available cash can pay back their debts more easily. This means that the people who own shares in the company are less likely to be put at risk by the people who lend them money. If the economy is doing badly, having money means that a business can carry on doing research and development. It can also carry on making more money or making its products better, in case the economy gets better later on.

Finding companies with cash in the bank is tricky. To start with, you should look for companies that have a lot of cash-per-share, a strong balance sheet, the potential to make more money in the future, and positive free cash flow per share (the amount of money the company has after paying its debts). Our screen shows companies with a large percentage of net cash on hand. When selecting final candidates, much of the analysis depends on your belief in management's ability to use and invest any cash hoard wisely.

When to Sell

Technical Sell Signs

1

Increase in consecutive down days

For most stocks, the number of consecutive down days in price relative to up days in price will probably increase when the stock starts down from its top
2

200-day moving average line

When some stocks are 70% to 100% or more above their 200-day moving average price line, you should sold.
3

New high on low volume

Some stocks will make new highs on lower or poor volume. As the stocks goes higher, volume trends lower, suggesting that big investor have lost their appetite for the stock.
4

Decline from the peaks

You may sell if a decline from the peak exceed 12% or 15%.
5

Living below the 10-week moving average

Consider selling if a stocks has a long advance, then closes below it's 10-week moving average and lives below that average for at least 8 consecutive weeks.
If you don't sell early, you'll be late. Your object is to make and take significant gains and not get excited, optimistic, greedy, or emotionally carried away as your stock's advance gets stronger.
Keep in mind the old saying :" Bulls make money and bears make money, but pigs get slaughtered."