Can anyone explain to me why is it that some company NAV is lower than its share price some is higher?

Also is it a good or bad thing that its NAV is actually much higher that its share price?

Thks

---

Added on September 23, 2009, 11:47 pmCome on...help please...really want to know...will be grateful for whoever that can answer my question...

Thks in advance

This post has been edited by nickiat: Sep 23 2009, 11:47 PM

Net asset value (NAV) is a term used to describe the value of an entity's assets less the value of its liabilities. Copied from Wikipedia.

NAV is the current true value of the company, that means the company is worth that price when it is liquidated. Share price traded lower than NAV is due to lack of confidence, or people just feel that the company is going to loose more of its equity/share (NAV) in near future.

http://www.winninginvesting.com/net_asset_value.htm