Ann: Interim Financial Report for the half-year e, page-4

re: Ann: Interim Financial Report for the hal... Vendor,

It is quite common for net assets to be less than market cap.

If some company had net tangible assets were much larger than the market cap, someone would take over the company and sell the assets for cash.

Having said that, during any good stock market crash, there will be companies selling at market caps below net cash, let alone net assets, as speculators and investors sell left, right and centre to raise cash.

The ratio of net tangible assets to market cap is a measure of how much the market is valuing future earning capacity of the company ... or, in the case of highly speculative companies, how bubbly the market valuation is.

Hope that helps.