We’re not quite sure we’ve ever seen HTC this low. The company’s stock continues to fall following subpar financial performance. It’s dropped 60% since they released their Q2 financial report, which is enough to push the market price down to NT$47 billion (about $1.5 billion). That’s less than the NT$47.2 billion in cash they had on-hand at the end of June.
So what does that mean? Well, they’re worthless. A market value lower than cash on hand means there’s little faith that the company can make money again, and a company that makes no money isn’t a very good company to invest in.
Bloomberg tracks 22 analyst firms, and not a single one of them would recommend anyone buying stock in HTC. Even worse, HTC isn’t expected to be able to turn a profit until as early as 2017.
It’s HTC’s hope to improve that outlook by streamlining their product portfolio, cutting jobs and trying to better compete at the high-end market with Samsung and Apple. It’s a decent strategy, but losing cash every quarter for two years when you don’t have a large pool to begin with doesn’t exactly sound comforting, and with investors running for the hills it’s going to be a tough battle from here on out.