BNC Mortgage Inc. of Irvine, Calif., is really worth more than the $50.4 million that management is offering for it, but that is a reasonable offer in today's market, several analysts said.

The situation illustrates the capricious nature of a stock market that can value unprofitable companies highly but assign little value to those with high or sustained profitability.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.