What is wrong with a company that holds a high cash balance? Isn't having higher cash a good thing?

There is nothing wrong with company holding too much cash.

But in situations like, Reserve Take-over, a company will suddenly have a lot of cash. This is a special situation which I will likely to avoid due to future uncertainty.

If the management do not have any idea how to use the cash, this is also a signal of company holding too much cash that is bad. For example, I saw many HK companies buying equities due to having too much cash and if I want to buy financial assets I will have do it on my own.

High levels of cash could signal that there is danger ahead. if there is so much excessive cash, investors would then start to question why is the money not being put to use. cash could be there because management has run out of investment opportunities or is too short-sighted and doesn't know what to do with the cash.

having too much cash also has an opportunity cost, which amounts to the difference between the interest earned on holding cash and price paid for having the cash as measured by the company's cost of capital.

companies with high cash balance may also run the risk of being careless. they may end up having inadequate control of spending and an unwillingness continually to prune growing expense.