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HTC investors: company brand, factories and buildings are 'worthless'

Things go from bad to worse over at HTC
By: Anthony Garreffa | Business, Financial & Legal News | Posted: Aug 10, 2015 10:27 am

It looks as though things have gone from bad to worse with Taiwanese smartphone maker HTC, with investors effectively saying HTC's "brand, factories and buildings were worthless", reports Bloomberg.

 

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HTC's market price fell to $1.5 billion on Monday, below the $1.5 billion it had in cash at the end of June. Calvin Huang at Sinopac Financial Holdings Co. in Taipei told Bloomberg: "HTC's cash is the only asset of value to shareholders. Most of the other assets shouldn't be considered in their valuation because there's more write-offs to come and the brand has no value".

 

Q3 2015 isn't shaping up to be too good for HTC either, with the Taiwanese company forecasting 48% below analysts' estimations, after a 35% cut to projected revenues in the preceding period. There's one massive looming question I have: what about Vive? HTC's VR headset that it collaborated on with Valve, which could be the most exciting product HTC has ever made.

NEWS SOURCES:Bloomberg.com

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