Dec

22

The Dec. 12 Barron's, page 32, lists some big cap stocks that have big cash holdings.

I list them in a table below, along with Value Line projections for 2012 earnings, and an "adjusted" P/E–the (price-cash)/earnings, which makes sense if you sort of assume that the cash earned nothing.

column labels:

ticker / cash per share / price / 2012 earnings from ValueLine / (price-cash)/earnings

msft   $7    $26   $2.80  7
csco   $8    $18   $1.45   7
goog   $129   $630   $40  12.5
orcl     $6     $29   $2.42    9.5
jnj     $11     $64   $5.25    10
pfe    $5      $21   $1.60    10
aapl     $87   $395  $32.50   9.5
cvx     $10    $103   $13.10  7
wlp     $53    $65(!)  $7.70   1.3
amgn     $19   $61  $5.50  7.5

As has been observed here before, stocks are pretty cheap these days.

Kim Zussman adds: 

On the subject of AMGN, one of my first posts on spec-list was "Amgen in P/E Stratosphere", ca 2004 or so. Though having no local insights about the stock, the then high P/E ratio was subsequently rectified in the denominator. (and has remained range-bound in Russian fashion since).

Presumably high-flying growth stocks either become value with dividends (also see MSFT) or debubblize (also see HOV, AMD, etc.


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