HTC Trading Below Cash on Hand

Tim Culpan, reporting for Bloomberg:

A 60 percent plunge in HTC Corp.’s stock this year pushed its market value to below its cash on hand. That means investors were effectively saying the smartphone maker’s brand, factories and buildings were worthless.

HTC’s market price fell Monday to NT$47 billion ($1.5 billion), below the NT$47.2 billion cash it had at the end of June. A drop of as much as 9.8 percent in its stock before a late rally signaled investors put no value on the rest of the company. […]

HTC’s fall from a market capitalization of more than NT$900 billion in 2011 charts the perils of a product and marketing strategy that’s failed in the face of stiffer competition from Samsung Electronics Co. and Huawei Technologies Co. Once the best-selling brand in the U.S., the failure of its One, Butterfly and Desire smartphones to drive sales has pushed HTC outside a global top-10 now dominated by Chinese brands.

Things move fast in this industry. In 2009 HTC was responsible for 80 percent of Windows Mobile handset sales. Two years later they were flying high as the best Android handset maker. Now the entire company is worthless.

Monday, 10 August 2015