No. of Recommendations: 2
JLC:"Corporately, if I have money sitting on the sidelines earning zero interest, I am not being productive as a manager/CEO. That money can be used for expansion, upgrades, etc., etc., etc. (and yes stock buy backs and dividends) to makes the company more productive."

Worse, if a company has a high cash position, an overfunded pension plan....it is a prime target for a hostile takeover by a rapacious purchaser who will take the cash, borrow lots of money and load up the company with debt, take that money, gut the pension plan and make no more contributions to it for years, etc. Maybe sell off parts of the company for high profits, leaving a debt ridden smaller company behind that quickly files for bankruptcy at the first hiccup.

t.
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