By Tom Dyson in DailyWealth:

We call them "cash boxes."

Cash boxes are publicly traded companies that hold enormous quantities of cash. They may have sold an asset, won a lawsuit, or issued new shares or bonds. Whatever the reason, they hold huge cash balances out of proportion to the size of their businesses.

Take one company I found last year. It was a homebuilder with an insurance business on the side. It sold its homebuilding business in 2007 for $890 million and hasn't found anything better to do with the cash. Now it's just a small insurance business with a huge pile of cash. Cash represents 88% of this company's total assets. The company has invested half this cash in short-term government bonds and the rest is on deposit in government-insured bank deposits.

I found another cash box recently...

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