Value Investing News

Hello,

I have been trying to analyze wsc, and what i noticed it has a lot of cash. total cash per share 301 and a stock price of 328. The set back is that the p/e is 32 wich is pretty high. I was wondering about insights on this stock? how will the tons of cash affect the growth of the stock in the long term? What i was thinking about, is if the company starts rebuying the stock and pay out a lot of dividend. The price to earnings ratio is gonna be very high (even if profits grow at a big rate). And the stock is gonna be overpriced. So what i am wondering about is, is their any point to all this extra cash. long term i think the company will still be able to grow the stock (at least profits) with a very nice rate (i have no idea how much but i would guess 20% or so).

What i can think of as a point to all this cash is that it can stop the stock from keeping it from getting underpriced. But that would also be able with 1b in extra cash. So in my mind the stock looks great at first sight but it is deceptive.

Unless the company wants to get the company trading at really high pe and keep it their for the long term. Then it would be a nice time to buy the stock now. But their is really no point in it for them.