Michman Finance Ltd (TLV:MCMN) Stock Catapults 28% Though Its Price And Business Still Lag The Market
Michman Finance Ltd (TLV:MCMN) shares have continued their recent momentum with a 28% gain in the last month alone. The last 30 days bring the annual gain to a very sharp 56%.
Even after such a large jump in price, Michman Finance’s price-to-earnings (or “P/E”) ratio of 11.2x might still make it look like a buy right now compared to the market in Israel, where around half of the companies have P/E ratios above 14x and even P/E’s above 23x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
For instance, Michman Finance’s receding earnings in recent times would have to be some food for thought. One possibility is that the P/E is low because investors…
