Hilary Kramer, editor of GameChangerStocks.com, says in these tough times, companies with lots of cash are in the best position to buy market share, make acquisitions and pay out dividends.That could make them good buys. In this short video, she discusses why cash-rich companies Cisco (CSCO), Gilead (GILD) and Teradyne (TER) are all good stocks to own.

Cisco, says Kramer, has $39.9 billion in cash in the bank which will be used to increase the company's dividend. The company will also use its cash to increase research and development and deploy it into advertising, marketing and competing competitors at bay. All this will help keep Cisco in a dominant position.

Kramer also says that Gilead is in a good position. The biotech company owns the franchise for HIV drugs. The company has over $5 billion in cash on its balance sheet. With its cash, the company will expand to new franchises, beyond HIV.

Teradyne, another company Kramer likes, has $600 million in cash. Kramer says it's a good target for a takeover by a semiconductor company because it specializes in automated test equipment for semiconductors. It is a growth industry and Kramer says it's a very attractive play.

Increase your money and finance knowledge from home

Bonds for Beginners

Learn about fixed income investments.

View Course »

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

Add a Comment

*0 / 3000 Character Maximum

56 Comments

Filter by:
bfnect

I'm willing to bet a pretty good amount that CISCO does not have $39.9 billion of cash in the bank. Bank interest is horribly low, so no financial manager would leave it there, especially in US dollars - Australia dollars, maybe. Obama is about to print our cash into a supply side commodity. Stocks won't be any better because they are valued in US dollars. It's real estate or gold - a combination of the two is safest.

November 24 2010 at 4:28 PM Report abuse rate up rate down Reply
bfnect

These guys are all the same - idiots trying to get you to buy stocks. I put my money in gold shares, and it has increased 35% in the last 12 months. Notice I did not say I made anything, because in reality the dollars has decreased in value and will continue to do so. Even if your broker shows you a 10% profit, you are actually losing money. How many of you have tripled your money during the last 10 years in the stock market? Gasoline prices have.

November 24 2010 at 4:24 PM Report abuse rate up rate down Reply
B INSANE OBOZO

do you own these stocks???

November 24 2010 at 4:13 PM Report abuse rate up rate down Reply
Kay

How can CSCO increase its dividend? CSCO does not pay a dividend. I have owned this stock since 1999 and it is worth less now then when I bought it. Just trying to figure out when the best time to sell. Don't want to add to the losses I am carrying over but looks like I will have to.

November 24 2010 at 2:02 PM Report abuse rate up rate down Reply
bdyftns

CSCO is a total dog. It pays no dividends. It's reported monthly and quartley earnings are in the negative double figures. The stock keeps declining with no news of a up turn. It's junk.

November 24 2010 at 2:00 PM Report abuse +1 rate up rate down Reply
theron

Let them make money the old fashion way.........EARN IT!!!! I wouldn't give them a dime of my money, so they can charge me to buy a stock that might make me a dollar and the CEO gets millions then charge me the dollar I made to sell it. biggest scam ever created. and when they put health care , utilities, food , and all other basic needs on the stock market, a lot of people suffered and still suffers. meanwhile they continue to buy up everything on the planet with YOUR money, and you pay what they want or do without. corporate bloodsuckers is what the stock market is, plain and simple.

November 24 2010 at 1:40 PM Report abuse rate up rate down Reply
HBSSL

What a bunch of B**LS**T why would you trust anyone your hard earned money to the SOB's that stole your 401-K money. 401-K will prove to be the biggest rip-off in the history of the world. Be careful by liars that will say anything to get your money, not thier own

November 24 2010 at 1:32 PM Report abuse -1 rate up rate down Reply
booroy2

If it were'nt for John Chambers I might consider purchasing shares of CSCO, but every time he announces and comments on their quarterly progress he manages to screw up the price of the stock for the next three months! And that's even when the companies out does the forcasted numbers. They need a new CEO!

November 24 2010 at 12:48 PM Report abuse +2 rate up rate down Reply
1 reply to booroy2's comment
Froggy

u might g right.

November 24 2010 at 7:25 PM Report abuse rate up rate down Reply
Nick Daviscourt

most of us do not have the money to worry about the stock market, how about how do we pay our electric power bill during this unusual cold spell on the the west coast, talk about investments

November 24 2010 at 12:40 PM Report abuse -2 rate up rate down Reply
1 reply to Nick Daviscourt's comment
hncckdv

Well Nick, I think maybe you should lighten up the computer usage, that might save some money on that bill if you are having a hard time paying for it.

November 24 2010 at 1:36 PM Report abuse +1 rate up rate down Reply
shami50154

I find cheap affordable "water purification" stock companies will be at a premium in 2011.Clean water is a commodity soon to be in high demand, with all the worldwide natural disasters. Check out inexpensive stocks of companies like GLEC and FWTC.. Might be worth a shot!

November 24 2010 at 11:48 AM Report abuse +2 rate up rate down Reply