Retail in Asia

In Trends

HTC trading below cash leaves a smartphone brand with no value

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

At TWD47 billion (USD1.47b), HTC’s market price is below the TWD47.2 billion cash it had at the end of June. A drop of as much as 9.8 percent in its stock Monday signals investors put no value on the rest of the company.

"HTC’s cash is the only asset of value to shareholders," said Calvin Huang, who has a TWD46.50 price target on the stock at Sinopac Financial Holdings Co. in Taipei.