First off, Happy St. Patrick's Day.
Yep, that's right, I count myself among the millions of us in the U.S. who boast of some form of Irish background. My Irish blood comes from ancestors on my dad's side of the family. And I take pride in my green past. Of course it doesn't hurt that green is my favorite color, especially when it comes in the form of cold, hard moolah.
Interestingly, a nose for the green can benefit you when it comes to stocks. Indeed, companies that trade for close to what they have per-share in the bank can make for promising investments, as fellow Fool Rich Smith points out here. The strategy was so successful during the dot-com bust that we even opened a discussion board aimed at finding these cash-rich "Green Gene" companies.
Seeing that we're bound to be surrounded by green all day, I thought it might be worthwhile to run Rich's screen and see what promising stocks pop up. I took three from a list of 25. Have a look:
|Company||Share price||Cash per share||EV-to-EBITDA|
A quick caveat to those wondering -- in cash-per-share calculations, cash actually includes cash plus short-term investments.
Boston Communications Group
Of the two, I like BCG. That's because of the recent spate of insider buying. After all, insiders typically have a pretty good grasp of what constitutes a stock's intrinsic value -- they usually don't buy without getting an attractive valuation.
Now, with all that said, it's important to remember that a sizable cash cushion doesn't automatically indicate a good stock. That can be determined only by solid, Foolish, fundamental research. Still, it's worth the work. For example, had you foundApple Computer
Fool contributor Tim Beyers hopes you, too, get to enjoy a pint of Guinness and fine Irish stew tonight. Tim didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what's in his portfolio by checking Tim's Fool profile, which is here. The Motley Fool has a disclosure policy.