Re:Zynga stock plummets below value of its cash and real estate
by nicholas73 on Wednesday October 10, 2012 @06:14PM
(#4638467)
Commonly, in addition to cash burn, a company's assets are a) overstated b) will not fetch fair market value in a firesale c) have many additional costs during the bankruptcy process.
In addition, large funds cannot sell their shares instantly, therefore will depress value below net assets, in effect paying a premium to get out of the stock.
In addition, large funds cannot sell their shares instantly, therefore will depress value below net assets, in effect paying a premium to get out of the stock.