(FORTUNE Magazine) – Falling corporate earnings, rising inflation, and fears of a downturn in the U.S. economy are almost enough to drive investors out of the stock market. But you don't have to give up equities for the relative safety of cash: You can have it both ways. Shares are selling cheap in many companies that have loads of cash themselves. Cash is a crucial weapon in recessionary times because it enables companies to thump financially strapped competitors by developing new products and expanding into new markets (see Managing). Says William Corneliuson, a portfolio manager for Milwaukee's Strong Funds: ''Nothing makes a manager or an investor sleep better than knowing that his company is in control of its destiny. Cash gives you confidence that the company is going to be around in ten years, and confidence keeps you from making rash mistakes.'' Investors get more than long-term comfort. Full corporate pockets not only ensure regular dividends but also enable companies to support the price of their shares if they drop too far: They can simply buy some of them back. These days, too, managers feel freer to accumulate dough without the worry that they're hanging out takeover bait: Junk bonds are on the trash heap, thus depriving raiders of their usual financing. A quick way to find cash-rich companies, apart from browsing through annual reports, is to turn to investor guides. Value Line and many others break down company assets, showing cash and cash equivalents. One multinational with gushers of cash is Royal Dutch/Shell Group. The British and Dutch integrated oil producer has no net debt and $8 billion in cash on its balance sheet. That's a potent combination, notes John Maurice, portfolio manager at Putnam Management Co. in Boston. Says he: ''If Royal Dutch/Shell wants to drill for more crude, they don't have to go to the bank with hat in hand. If they want to hire new geologists, they can pick them up from other companies that can't match their pay.'' Another advantage: Some 20% of the company's recent $79.88 share price is supported by cash. (See table for a sampling of companies with such solid backing.) Maurice expects earnings, $6.50 a share in 1989, to grow to $6.75 this year and $7.75 in 1991. The dividend yield: a healthy 5.5%. What's good for oil isn't usually good for automakers. That may not be true for Ford Motor, though. It has a $6.4 billion debt -- in part reflecting its recent $2.5 billion acquisition of Jaguar -- but that is precisely covered by $6.4 billion in cash. Says Boston-based Colonial Fund manager Christian Bertelsen: ''I can't see how you could miss with Ford. It's the best domestic car company, and it knows how to take on the Japanese.'' Ford's stock recently dropped to $31 per share -- about 40% lower than a year ago, largely because earnings are expected to fall 27% this year to $6 a share. Bertelsenpls ck spelling believes that is close to bottom. More optimistic than some, he is betting that earnings will rise in 1991 to $7.50. ! He also likes the high 10% dividend yield. Like many security analysts, he doesn't expect Ford to reduce its dividend, even though the yield beats the interest paid on long-term Treasuries. Another cash cow in a battered industry is CBS. It has over $1 billion in cash and $2 billion in liquid investments, which together amount to four times total debt and represent a chunky $125 in cash behind every share. Given the recent $165.63 stock price, the market is valuing all of CBS's businesses -- the TV and radio networks and wholly owned stations among them -- at little more than $40 per share. Notes Putnam's Maurice: ''The network alone is worth at least $90 per share.'' CBS's troubled third-place slump in the ratings, he argues, is already reflected in the stock, as are anticipated declines in earnings. If the market doesn't tune in to the network's value soon, Maurice believes, the company could be sold. A longtime rumored buyer: Walt Disney. Where should the shares trade? At a minimum of $225, says Maurice. Smaller companies, too, find cash a source of comfort. For years, snack-food processor and vending-machine operator Lance of Charlotte, North Carolina, has used its generous cash flow to invest up to $30 million annually in new plants, trucks, and other equipment without borrowing. The company, 45% owned by the Van Every family, shows $71 million in cash on its books, equal to 31% of total equity. David Tripple, chief investment officer of the Pioneer Group of funds in Boston, calls Lance one of his gems. Says he: ''This is the kind of stock I like to accumulate. I just buy more when it's cheap'' -- which it is now, he claims. Tripple expects 1990 earnings to rise 9% to $1.55 per share. Dividends should continue to grow about 11%. Just part of the smooth ride you get from investing in cash-rich companies.

CHART: NOT AVAILABLE CREDIT: NO CREDIT CAPTION: TREATS FOR ALL Goodies sold through its vending machines bring in a steady stream of cash for Lance Inc. Like other companies on the list, Lance's hoard should help it compete in recession-wary times.