Book value is sometimes called the intrinsic worth of a company. What is AFFY's book value? According to AFFY year end balance sheet: Total assets = $118M Total Liabilities = $109.9M Net Equity = $8.3M
Dividing the $8.3M Net Equity by the 37M shares outstanding = between 22 cents and 23 cents per share. Good luck to all longs. You are going to need it since the fundamentals are so much against you.
Good point GW. But these numbers are three months old. Before the massive layoffs (which I predicted by all LAffyStock holders ignored), LAFFY was burning $30 million per quarter in cold, hard cash. When times are good, a company's liabilities seem almost theoretical. But in times like these, the liabilities are very real. It is clear that LAFFY is BK in the common use of the term. I stick by my words: "It's Over".
I agree. Also, AFFY's assets were valued as in the ordinary course of business and as a going concern. If AFFY out of business, then the assets are worth far less. It's over one way or another and the shareholders will be left holding an empty bag.