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  • HTC Left with No Value as the Company Trades at a Value Below Cash on Hand


    HTC, the popular Taiwanese gadget manufacturer, which was previously one of the biggest names in the smartphone market is now considered essentially worthless by investors as its market value ended up falling below its cash on hand. Just last night, HTC stock ended up bottoming out at $56.70, eventually closing out at $57.50 while the company held NT$57 per share in cash. For those of you who arenít sure what that means, investors basically donít believe that HTC has any intrinsic value.

    Even though the company ended up garnering relatively favorable reviews for its handsets including the One M9, the company has found itself unable to fend off competition from Apple and Samsung at the high end and cheap Chinese brands at the low end. A recent expansion of its product line, with the release of its handheld camera, Re, along with an executive shakeup that saw the cofounder, Cher Wang, take the reins as CEO, all havenít been enough to convince investors that the company can be salvaged.

    With all of this recent news, the company faces nothing but layoffs and cost-cutting. HTC CFO Chialin Chang told Reuters the following regarding the matter:

    The cuts will be across the board. They will be significant.
    Many are speculating that the weak financial position HTC is in makes the company a prime target for acquisition, though the companyís largest asset, which is its brand, has also lost a lot of its luster.

    Weíll have to wait and see what happens to the company but what we do know is that it is likely going to be bleak.

    Source: Bloomberg
    This article was originally published in forum thread: HTC Left with No Value as the Company Trades at a Value Below Cash on Hand started by Akshay Masand View original post
    Comments 2 Comments
    1. unison999's Avatar
      unison999 -
      The lawsuit from Apple and settlement payment hurt HTC quite a bit, that was when HTC start to go down hill.
      It is sad to see how far they have fallen, doubt they will ever recover.
    1. exNavy's Avatar
      exNavy -
      Ok Alphabet start throwing your money around to right the sinking ship. Or just let the darn thing sink.