Simply that most stocks, with any upside whatsoever, trade above their book value (speculative value). In HNG's case, all the Directors have to do is set out a clear, concise, and well thought out path to growth and the SP will have a chance, at least, of exceeding that book value. Its a pity the Directors don't seem to understand this, but maybe the penny is in the air?
Its a positive from a potential investor's perspective: if you are looking for an undervalued stock there is a chance to be ahead of the curve. Limited opportunities if its trading in excess of BV. Be better if it were trading below BV (ie, a SP to NTA of less than 1).
HNG Price at posting:
35.0¢ Sentiment: None Disclosure: Not Held
