One aspect of the stock market crash
A post at the New York Times Bits blog points out one of the anomalies of the stock market’s waterfall in values. Sun Microsystems has the same amount of cash on hand as its entire market value. In other words, the company could buy all its outstanding shares with its own cash reserves. In effect, the market is valuing the business of the company at zero.
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Sorry, the comment form is closed at this time.