During these turbulent times in the market, I have found myself searching for companies with secure cash flow that are on the receiving end of big dips. These companies, in my opinion, present the best buying opportunities as the markets shed excess weight.
VeriSign was one of the companies that popped up on my list of cash flow stable firms. This business requires little cash to operate and is unlikely to be on the receiving end of a massive drop in revenues. Significant declines present a buying opportunity for long-term investors.
The Cash Cow
To convey what VeriSign does in the fewest words, imagine a toll road. If you're on it, you're paying. Well, VeriSign is that, but for the internet. For every .com domain name registered, the company collects $7.85 per year for every .net registered, a little bit north of $9. With no competition around, they are the internet's toll road.
read more (seeking alpha)
VeriSign was one of the companies that popped up on my list of cash flow stable firms. This business requires little cash to operate and is unlikely to be on the receiving end of a massive drop in revenues. Significant declines present a buying opportunity for long-term investors.
The Cash Cow
To convey what VeriSign does in the fewest words, imagine a toll road. If you're on it, you're paying. Well, VeriSign is that, but for the internet. For every .com domain name registered, the company collects $7.85 per year for every .net registered, a little bit north of $9. With no competition around, they are the internet's toll road.
read more (seeking alpha)