The former, Dedio says, trades at only eight times 2012 estimates with a 20% net cash position relative to its stock price.

FORBES: Why You Should Own a Really Diversified Portfolio in 2012

Financially, Apollo Group is in stellar shape with a massive net cash position on its balance sheet, and significant free cash flow generation capabilities.

FORBES: 5 New Year's Resolution Stocks for 2012

At 12.4%, Merck's net cash position is almost double that of runner-up AstraZeneca and 12 times the average for companies in the pharmaceutical sector.

FORBES: Magazine Article