A company with assets that are not believed to be accurately reflected in its stock price, making it an attractive buy or play.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A stock with a net asset value above its market capitalization. An asset play is undervalued and therefore is considered to be a good stock to buy. See also: Wallflower.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A stock with a market price considerably lower than the value of the firm's assets on a per-share basis. For example, a paper company may operate in an extremely competitive market and earn minimal profits. However, a financial analyst may believe investors are concentrating on poor earnings and are pricing the stock in a manner that does not consider extensive and valuable timber and real estate holdings and thus does not reflect the stock's current market price. Thus, the stock is an asset play.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.