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.
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