More Cheap (Apparently) Stock Tidbits, from Charles Pennington
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.