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Technology Stocks : SOFN - little ATHM

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To: Bernard who wrote (236)8/16/2000 9:42:17 AM
From: Condor  Read Replies (1) of 261
 
This courtesy of Kevin Thompson.
"Book value / share refers to the sum value of all of the company's hard assets totalled at a
"liquidation" price divided by the number of outstanding shares. I believe this number is
meant to give investors some idea of the "bottom line, least calculated" asset value a
company would have if it were to go out of business or file bankruptcy, per share.

The idea being to invest in a company with a high book value per share. If you pay less than
book value/share for your investment, you should feel somewhat confident that your
investment is much less at risk from a value standpoint, than buying shares where the book
value / share is minimal. Very small book value / share numbers would tend to indicate the
share price is way overpriced and inflated.

Book value / share has very little to do with whether the stock goes up in price or not,
especially in growth stocks, and high tech momentum plays."
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