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Technology Stocks : ADFLEX SOLUTIONS ( AFLX )

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To: Zeev Hed who wrote (651)5/6/1999 5:45:00 PM
From: Dave Mansfield  Read Replies (1) of 718
 
Douglas, why is this company selling at 30% or so of its book value?

I'll take a stab at that. A lot of the book value is composed of plant & equipment and inventory. And if that is carried at book value (cost minus depreciation) instead of market value, it might be overstated. I've been burned by this on at least two separate occasions. Price to book is not necessarily a good measure of value and book value is not necessarily a good floor.

Dave
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