Learning To Invest Correctly - A Shared Experience Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Learning To Invest Correctly - A Shared Experience

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: MSB who wrote (89)	7/26/1998 1:02:00 AM
From: Druss	Read Replies (2) of 253

MSB--A word of caution on book value. It is not always an accurate reflection of reality. In theory a company trading at book value would be a totally safe investment. If the company were to go belly up a fire sale could be held and the proceeds divided up and sent to the share holders and they would break even. It is not always so as the machinery being valued close to purchase price may only have scrap value on the open market. Buildings may also be far overpriced as renovation maybe required to sell them or make them attractive or the real estate simply shows no buyers. Treat book value with a grain of salt. All the Best Druss

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next