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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01 -- Ignore unavailable to you. Want to Upgrade?

To: cool who wrote (1391)	5/8/1998 3:29:00 PM
From: Early Out	Respond to of 13094

I would think everyone would want to buy $1 for $.50. Only if you get the money right away. In the case of a stock trading below cash value there is a concern that the cash will not be there shortly. For example, a company might have $30,000,000 in the bank but have a burn rate of $10,000,000/month. In that case cash value is a useless measure because the cash is going to be gone! I'm not saying that's happening in the case of MDIX, just giving my thoughts why a stock may not trade at today's cash value. -jsc