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S&P Dow Jones Indices senior index analyst Howard Silverblatt on the companies sitting on the most cash.
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-- the market may be up this year but corporate America is really continuing to toward cast likely posting a record high in the fourth quarter.
So let's get companies spending again and who'll what more importantly -- -- in the most gas.
How would sort of -- senior index analyst for S&P Dow Jones indices and he joins us now you know everyone thinks it's apple -- the big culprit the big cash order.
Not -- -- right.
Well it's actually technology so it's close to being apple apple has it the most cash although they keep a lot of -- -- -- their current assets.
It's actually in investments which is very and usually have over 97 billion dollars and most of -- -- level to.
But and officially if you go with -- Microsoft being Google.
That have the most cash that's sitting on it technology.
Uses the most catch diseases -- options.
As well as on NB along with health -- but in general company's cost sitting on what we believe is going to be of that amount of cash is -- At the end of the yes and while -- spending they're making more even though the earnings seem to be tilting down the cash -- very good and we may have been the -- for the fatalities a lot of this money being held.
Somewhere overseas.
These multinational come corporations that want to -- -- anyone is praying for repatriation.
Right touch come through whether it does it doesn't but there -- ways to use some of that can't for the bottom line is.
Is that significant amount of cash still being held Kia from companies -- choosing not to spend at this point in time.
It's not that they have to do one thing over another they can do almost all of it even if they want -- and the amount of taxes that they have to pay.
It's a matter of choice in this case the uncertain about the future we're we're going over the next six months and six years.
And the things they've done in the past -- their cash and mean and doesn't doesn't doesn't account for much right buying back shares even issuing a dividend while they did it was clearly 'cause of tax lot of reasons.
The wasn't to advance -- company at all.
-- doing the minimum amount they have to the buybacks which they keep pace with options to protect earnings from dilution.
I was seen that cone and with a decent quarter but again the mark was good so they were picking up from the capital expenditures again.
It may be a record fourth quarter the cap of mention but we're not seeing expansion we're not seeing another facility built or that food got shift coming in with seeing the maintenance -- it India.
I think the dividends companies we had a record amount of dividend for last year left quarter.
However the company is Tony paying -- -- 6% of what they may historically it's 52% so they -- being stingy.
Is there any credibility to the notion outfit -- all of these rich executives of these companies are waiting for President Obama to leave the Oval Office before they actually jump in with more investment and hiring.
Is to be mean for years as compared adjusted -- yes.
Yes Baden.
I'd have no media on that better along taught executives really have to deal with what the companies are doing now.
And I believe that if we get some go right good or -- when you know what's gonna happen.
Okay if -- go to markets and it changed 20% this year if that question the up and down yeah that will little direction they yeah.
Philip Howell as a corporate planet can you decide to make a point or to do -- what do cutbacks even.
-- it's that's what's keeping the cash debt and when they -- start to spend.
They didn't need -- hearing this stuff for how I mean desperate seems forever uncertainty.
A year and a half to two years -- -- the insanity and we still -- now we have.
The next ratings number which is up plus the sequester whether it goes that doesn't go at this is can keep Ghana.
Howard silver black thank you so much for that thanks to having an interesting stuff are.
