Cash On The Balance Sheet

Anyone look at the balance sheet of the home builders or retailers lately? Then did you take a look at the cash flow statement?

I did.

What about the income statement you say? Those are worthless. It doesn't matter in the short run if you write down $300 million as long as you only burn cash of $10 million.

Judging by how little cash is being burned, and how much cash is on the balance sheet of most home builders and retailers, it looks like they can survive for years.

It would take a drastic decline in revenue for most home builders and retailers to go bankrupt within the next 18 months.