asset play

asset play definition - business

asset play

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.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.