Stockpickr: The Top 10 High-Yield Tech Stocks

You can see other Renaissance holdings here; I plan on offering an in-depth look at them next week. To judge from its holdings, it seems that Renaissance has come up with a formula that says buying companies with heavy cash and no debt has a good margin of safety.

For instance, another holding is Synopsys(SNPS Quote), which has $572 million in cash (for only a 3.7 billion market cap) and zero debt. As an aside, someone who had $40 million invested with Renaissance told me I would like them, saying that "they even study what happens to the markets when it snows." I figured that I could do that, too, and the result can be found in the Active Trader section on Stockpickr in our Blizzard System.

Nam Tai Electronics(NTE Quote), with a 9.4% dividend, is also an interesting play. The company is valued at $664 million by the market but has $238 million in net cash in the bank and almost $70 million in cash flows, so it is trading at only a little over six times cash flows. That's cheap enough to make it a buyout target.

Even though Nam Tai hands out almost $60 million in dividends, its operating cash flow is over $100 million. So the company has plenty of cash left over to pay that 9% dividend. The six analysts covering the stock think it will earn $1.13 a share in 2007, up slightly from $1.10 in 2006.