Stockpickr: Top Stocks With Tons of Cash

Where is the opportunity here? UTStarcom is the leader in IPTV -- TV broadcast across the Internet protocol. This may end up being the primary way consumers in both China and India view television. In fact, UTStarcom dominates 90% of the IPTV market in China, and this market is expected to go to 20 million consumers by 2010. Companies that possibly could acquire UTStarcom include Cisco(CSCO Quote) and Alcatel-Lucent(ALU Quote).

UTStarcom also appears on the list of top-ranking Value Line stocks that are trading for less than $10. In a blog post, Omid Malekan discusses how buying stocks on this value line list has historically resulted in superior returns.

Finally, hedge fund Tiger Global, a spinoff from Julian Robertson's Tiger Fund, also owns shares of UTStarcom.

CSK Auto(CAO Quote) is also on our top free cash flow list. The auto-parts retailer has had a tricky year, facing both the general problems in the auto industry and various accounting scandals -- a situation that it dealt with by restating financials (restated financials are due at the end of February) and firing all executives involved. Its stock plummeted during the year and has only just recovered.

Meanwhile, thanks to its acquisition in December 2005 of auto-parts retailer Murray's Discount Stores, the company reported a 16% year-over-year increase in sales in November. Cash flows over the past 12 months were $154 million. With a $1.1 billion enterprise value, the company is cheap enough to be considered a buyout candidate.

And we're not the only ones who believe so. Activist hedge fund Karsch Capital recently sent a letter to the company demanding it put itself up for sale. Check out the rest of Karsch's holdings, including value plays such as Wesco Financial(WSC Quote), as well as tech/value plays such as Microsoft(MSFT Quote) and Applied Materials(AMAT Quote).