Sun Micro math

Safe as Milk - Wed, 30/07/2008 - 10:37am

Can someone who understands markets better than me explain why this doesn’t imply I should go to the bank & borrow 10 or 12 billion dollars right now?

  • Sun Microsystems assets (end March 08): $14.262 billion
  • Sun Microsystems market cap at $10.21 per share: $7.98 billion

Incidentally, Sun’s market cap on the 15th of July, at $8.78 per share, was $6.86 billion.

Of course, you have to clear liabilities, and get a good price for the profit-making businesses, but doesn’t this smell to anyone else like a fire sale in the waiting?