asset play investment & finance definition
A
stock that is attractive because the current price doesn’t reflect
the true value of the company’s assets. Companies that are an asset play are a
tempting target for takeovers because they are an inexpensive way to buy
assets, thereby guaranteeing a certain return.
See asset play in Wall Street Words
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.
Learn more about asset play
