ASSET PLAY

It is a wrongly-valued stock that is very attractive to investors because its asset value combined is actually higher that the current market capitalization. The term is used to refer to the stocks of a company that is believed to be undervalued by the investors because their current price is lower that the reflected current value of the assets of the company. It is called an asset play because the driving force behind the acquisition of the stock is that the asset of the company is being offered relatively cheap in the market, making it very viable to play or buy. Many investors look into asset plays because they are good investments since they have strong assets as back ups.