This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Cash-Rich Stocks to Buy in 2013

Stocks in this article: GMCOSTAAPLATVIMRVL

General Motors

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

It's not your dad's General Motors (GM) anymore. GM came out of bankruptcy cutting a leaner profile -- and a balance sheet that's flush with cash. The firm currently sports $24.6 billion in net cash after all of its debt is accounted for, an amount that offsets half of the firm's $44 billion market capitalization. GM is one of the biggest automakers in the world, with brands Chevrolet, GMC, Cadillac and Buick surviving bankruptcy.

Auto sales have been increasing in the last couple of years, and GM has been cashing in. The firm has already booked record annual profits, just a couple of years after exiting bankruptcy, and its leaning out has everything to do with that.

To be clear, you can't just shave GM's $24.6 billion in cash off the top. The firm also supports an underfunded pension that has multi-billion-dollar annual contribution requirements. That said, worker retirement costs are a whole lot more tenable now than they were just a few years ago, and the firm has the wherewithal to support those payouts for the foreseeable future.

Emerging markets present a big growth opportunity for GM. China in particular is a huge market for GM, with the firm selling a record 2.8 billion vehicles in the People's Republic last year. A burgeoning middle class population in emerging market nations could quickly grow the number of car buyers in markets like China, Brazil, and India even in spite of local competition in those countries. GM posts its next earnings call on Valentine's Day.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,113.86 +139.55 0.82%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,536.6280 -12.5980 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs