If you had only little money to invest, and you had a relative tell you that you needed to go with top billed – even if you only get a couple of shares for your capita;, would you do it? Or would you try to look for a riskier company that was down on its luck but made a great bargain? What is it that makes cheap shares from a luckless company a good bargain nevertheless? When people try to evaluate companies like this for their potential, there is an area they often neglect to look closely at – their cash reserves. A company that has somehow fallen out of grace with its customers and lost its touch in its business can still exercise lots of options if it has a reputation, and a ton of cash to take advantage of it with. These make for the best stock investments when you are not doing that well yourself.
There are several companies around that fit this description -companies that can use their cash reserves to tread water for some time while they get their problems sorted out. Here are a handful of companies that trade now for five dollars a share; each one is a world-famous, respected multinational corporation with an overarching presence the world over. Thy are leaders in their trade, if not in their business at the moment. At five dollars a share, it wouldn’t hurt to have a little faith. Some mythically great investors like Warren Buffett for instance, made a name for themselves swooping in on shares of companies like this. To lesser mortals like you and me, these are the best stock investments today for just a little outlay.
Alcatel Lucent is a world beating telecommunications business. Most of the cell phone towers you see craning up off rooftops (anywhere around the world) are probably ones set up by these people. They are losing their marketing touch now, and aren’t on top of their game. But there’s every reason to believe that they’ll get there again; you could get two of their shares for five dollars. Oh, and did he realize that most of the price of the share comes not from the value of their business, but for pure hard cash?
Sprint Nextel is a household name around the country for prepaid cell phones; the company has invested heavily in its networks, and has run up more than $20 billion in debts; but with a cash pile worth $4 billion, it’s not in any danger any time soon, and it wouldn’t hurt to bet on it with 2 1/2 shares for your five dollars.
Do remember that you used to see advertisements for Novell all over the place a while ago? Whatever happened to them? This multinational hardware and software company that makes specialized operating systems for large corporations, is in no debt, but it isn’t a tech powerhouse like IBM either. They are trying to focus on going open source Linux and on making their profits there. You’ll get one share for five dollars, and you’ll be getting a stake in their proprietary operating system software. Everyone expects them to find their feet again once they are properly established in open source.
But we could move away from the tech companies and look at something alternative for the best stock investments you can find for a little cash. Wendy’s, the fast food chain, is a particularly tasty investment. They have a massive presence all over, and their dollar menus are well loved. The company’s founder passed away nearly 10 years ago, and the company has been struggling to find its true calling ever since. It’s been acquired by Arby’s, a holding company that buys into food businesses and turns them around. They’ve been doing a great job at cost cutting, and they seem to be on their way up again. The company has cash reserves of more than half a billion, and you could get one share for five dollars. I’d bet on a good mouthwatering burger any day.