Sunday, January 25, 2009

Cash In The Coffers & NO Debt!

While scouting for prospective stocks, keep in mind that companies that have plenty of cash on hand with very little or NO debt have a much better chance of weathering the economic slow down. 
These seven diverse companies listed below seem to have this in common: plenty of cash, none or 
very little debt and management has a stake in the business. Most of these stocks are trading at a
 third to a half of their fifty-two week high. 

AVX Corp. (AVX) - A leading Worldwide Manufacturer and Supplier of Electronic
 Components. Its products are used in electronic devices to store, filter, and regulate electric energy.

Korn Ferry  (KFY) Since its founding in 1969, Korn/Ferry 
International has been the executive recruitment industry’s leader and innovator, and today, has evolved as the world’s premier provider of executive talent management solutions.

K-Swiss (KSWS)Since 1966, K-SWISS has represented innovation, quality, performance and style. Its signature K-SWISS "CLASSIC," the first leather tennis shoe, made its debut at Wimbledon in 1966, and more than 40 years
 later, is still a style staple both on and off the court. Today, K-SWISS' premium sports heritage has 
expanded from tennis footwear, to also lifestyle, running, training, nautical, and free-running
 footwear that stands up to the performance demands of world-class athletes and trendsetters alike. 

Landec Corp. (LNDC)Landec Corporation and its subsidiaries design, develop, manufacture, and sell temperature-activated and other specialty polymer products for food and agricultural
 applications. In addition, outside of food and ag, the Company will selectively work with industry leaders as licensed partners. The Company's strategy is to identify commercially attractive 
business opportunities and to seek market share through the application of its proprietary, enabling Intelimer® technology.

Sigma Designs (SIGM) Sigma Designs develops and markets high-performance, highly-integrated System-on-a-Chip (SoC) semiconductors for the following key markets:
  • IPTV Set-top Boxes
  • Blu-ray Players/Recorders
  • HDTVs
  • Digital Media Adapters
  • Portable Media Players
  • UWB (Ultra-Wideband) Connectivity Products
 Thor Industries is the world's largest manufacturer of
 recreation vehicles and a major builder of commercial buses, and has
 been driving for excellence since its founding in 1980. 

 designs, manufactures, sells, and services advanced test systems and solutions for the semiconductor industry. Building upon our proud heritage—the roots of Hewlett-Packard Company and the strengths of Agilent Technologies—we work closely with our customers to help lower their cost of test and improve their overall competitiveness.

   Company       Cash       Debt       Insiders       P/E       Price

AVX Corp.        600m       0              72%           12        $ 8.85
Korn Ferry         202m       0             10%              7        $9.62
K-Swiss             291m       9.4m       21%           10       $10.01
Landec Corp.   61m          0             14%            12        $ 5.45
Sigma Design  132m       0              19%              6        $11.37
Thor Industries  178M       0               46%           11        $11.73
Verigy Ltd.         340m       0               17%           17         $8.33

*Famed Value Investor Martin Whitman who is a veteran stock picker with a long, distinguished history as a control investor. He is Co-Chief Investment Officer of Third Avenue Management and has successfully identified value in securities for more than 50 years. Currently Mr. Whitman holds large stakes in AVX Corp. and K-Swiss. He is the second largest holder in both companies

*Author suggests futher research before investing.
 Author is currently long  KFY, KSWS, and THO


  1. I hold KSWS myself. It is the turnaround stock in my portfolio. Note that the CEO holds the majority of voting power and the 21% refers to the common class stocks I believe.

    KSWS will survive this downturn. Im trusting management experience to turn this around.

  2. They are defintely a niche player in the shoe business, catering to the tennis player.

    I like the heavy cash position and NO debt.