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To: Elroy who wrote (12040)2/27/2009 12:48:48 PM
From: ajtj99  Respond to of 33421
 
When looking at stocks, you assume the cash belongs to the company and the debt is something the creditors need to attempt to recover if something goes wrong.

That's why cash on hand is important. A company is basically viable as long as they have cash regardless of the debt they're carrying, and they're typically valued accordingly. Whether the cash actually belongs to them is irrelevant.