Trading Below Cash

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Dictionary Says

Definition of 'Trading Below Cash'

When a company's total share value is less than its cash minus debts. Trading below cash occurs when the market capitalization is less than the amount of actual cash a company has on hand. Trading below cash often occurs when growth prospects are poor.
Investopedia Says

Investopedia explains 'Trading Below Cash'

Trading below cash may or may not be viewed as a negative depending on the company outlook. If a company is in the process of a turnaround, the stock may be trading below cash with the potential to succeed in the future. The opposite may also be true, if a company is trading at below cash with weak growth prospects, it may be a sign the company is in trouble.

There's an old saying, "even a palace isn't worth much if it's on fire," meaning that a company's cash reserves aren't nearly as important as how fast the money is being spent (the burn rate).

Search results for

'Trading Below Cash'

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    http://www.investopedia.com/articles/stocks/09/companies-trade-for-less-than-cash.asp
    ... A stock trading below cash may be a true value stock in situations where
    the pessimism surrounding its prospects is not justified. ...

  • Free Cash Flow Yield: The Best Fundamental Indicator

    http://www.investopedia.com/articles/fundamental-analysis/09/free-cash-flow-yield.asp
    ... Comparing the four companies listed below indicates that Cisco is ... Flow The Easy Way
    and Free Cash Flow: Free ... so Hans created a website, Trading Online Markets ...

  • Cisco Dunks … On The Kiddie Hoop

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    ... That Cisco is trading below the fair value of its probable cash flow is nothing
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  • Equity Valuation In Good Times And Bad

    http://www.investopedia.com/articles/fundamental-analysis/09/equity-valuation-good-bad.asp
    ... Pricing Model: An Overview.) Limitations of DCF Estimating future cash flows from ...
    book may be a relative measure, stocks which are trading below their book ...

  • Free Cash Flow: Free, But Not Always Easy

    http://www.investopedia.com/articles/fundamental/03/091703.asp
    ... Advertisement - Article continues below. ... other hand, provided that investors keep
    their guard up, free cash flow is a ... Make Money Trading Earnings Announcements. ...

  • Bear Market Lows Return

    http://stocks.investopedia.com/stock-analysis/2011/Bear-Market-Lows-Return-UPL-PVA-GMXR-QEP0926.aspx
    ... future net cash flows from these reserves at $5 billion using the SEC price and
    $8.6 billion at $6 per Mcf. Penn Virginia (NYSE:PVA) is trading below its bear ...

  • 5 Common Trading Multiples Used In Oil And Gas Valuation

    http://www.investopedia.com/articles/basics/11/common-multiples-used-in-oil-and-gas-valuation.asp
    ... average or below average financial leverage. To calculate this, take the price per
    share of the company that is trading and divide it by the cash flow per share ...

  • 3 Reasons To Own Estee Lauder Now

    http://stocks.investopedia.com/stock-analysis/2011/3-Reasons-To-Own-Estee-Lauder-Now-EL-PG-AVP-RDEN1024.aspx
    ... guidance sent its stock for a tumble trading below $90. ... of those losses, closing
    October 14 trading at $97.97 ... Free Cash Flow Over the past decade, Estee Lauder ...

  • The Essentials Of Corporate Cash Flow

    http://www.investopedia.com/articles/01/110701.asp
    ... annual cash flow statement (from June 2004) shown below, we can ... of your stocks falling
    victim to a cash flow crunch. ... Make Money Trading Earnings Announcements. ...

  • Spotting Cash Cows

    http://www.investopedia.com/articles/stocks/05/cashcow.asp
    ... Advertisement - Article continues below. ... To find PG's free cash flow multiple,
    we'll look at its ... day, the stock closed at $56.09 (see PG's trading quote that ...

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