Is Cash Not King?

from the not-when-it's-burning dept

“Cash is King” was drilled into my head in business school over and over again as a metric for judging businesses. Now that many dot coms are getting hammered by the market, many people are thinking about snapping up stocks that are valued at less than the cash the company has on hand. The article points out why this might not be such a good idea. When that cash is burning quickly, it’s not being used for investment, but to stay afloat. So, it’s not worth as much as you might think.


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