[quote=IMBeta305,May 26 2017, 04:18 PM]
Meaning, you pick stocks based on NTA because you think you will get something back in case of liquidation.
But I wouldn't touch a atock with significant risk of liquidation lah...
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thats the only way to interpret NTA?
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some player analyse and value company based on the company intangible assets and projected earning based on announced new project etc... too.
Given NTA vs current market share traded how much market perceived the growth earning power , intangible assets or etc.
As many guru said before, investment is like art more than science.
Just imagine you bought a piece of land 30 years ago RM10k without any revaluation, in this case NTA obviously is not a true indicator for the land right?
Imagine the you buy a,
Company A vs company B both have the exact same NTA. Company A no more generating profit while company B still making profit above FD rate lets say. Obviously company B is worth more than company A.
There are lot of books teaching teachinh these financial ratio. But if you personally involve in business, it helps you to understand better i would say.
Sorry for long wind post