If you are looking for stocks that are ’safe’, the first thing that most investors, and traders, look at is how much debt the company has. The debt free get a lot of focus. One of the other metrics worth looking at are stocks with a low Price to Cash Flow ratio.

Why is cash flow more important than earnings or net income? It gives a more realistic idea about the amount of actual funds that are coming in to the company. WallStreetNewsNetwork.com has discovered seven debt free stocks with Price to Cash Flows below 5 and PE ratios below 9. They all have market caps over $500 million.

One of the stocks is Take-Two Interactive Software Inc. (TTWO), with a Price to Cash Flow ratio of 3.1 and a PE ratio of 8. This publisher and distributor of interactive software games was upgraded a couple months ago by Cowen & Co. The stock has a PE ratio of 0.45.

Another stock without any debt and a low Price to Cash Flow ratio, of 3.98, is Garmin Ltd. (GRMN), The maker and marketer of global positioning system products. They just reported lower third quarter profits. The stock has a PE of 5, a PEG of 0.38, and pays a yield of 4%.

The rest of the stocks can be found in a downloadable Excel database at WallStreetNewsNetwork.com, and can be sorted and added to.

If you like high yield stocks, check out Yields Over 9% on Quarterly Dividend Stocks.

Author does not own any of the above.

By Stockerblog.com

Last 5 posts by Fred Fuld

• Ken Fisher Interview - Part 4 – Female Scam Artists and Selling the Scam – Stockerblog Exclusive - October 21st, 2009
• Stocks Going Ex Dividend the Fourth Week of October - October 13th, 2009
• I Wonder What the Fire Insurance Costs on This Real Estate - October 13th, 2009
• Goldman Sachs Invested in Chinese Car Maker - September 23rd, 2009
• Can Debt Free Selling At Cash Stocks Beat the Dow? Up 29% in Two Months - May 12th, 2009