Registered: Aug 2007
08-06-12 11:22 PM
Quote from colonial dr:
Lots of companies trade under book value -all financial stocks trade under or a little higher than book value.
that's because the book value of financial stocks can't be trusted. Their balance sheets are a tangled mess. They are so heavily invested in leveraged instruments (derivatives) that their book value can plummet almost overnight, as it did in 2008.
GM's book _should_ be more straightforward, since they spun off their financial arm (GMAC) years ago