Market Might Still Lack Some Conviction On PesoRama Inc. (CVE:PESO) Even After 30% Share Price Boost
PesoRama Inc. (CVE:PESO) shares have continued their recent momentum with a 30% gain in the last month alone. The bad news is that even after the stocks recovery in the last 30 days, shareholders are still underwater by about 2.8% over the last year.
Even after such a large jump in price, given about half the companies operating in Canada’s Specialty Retail industry have price-to-sales ratios (or “P/S”) above 1.3x, you may still consider PesoRama as an attractive investment with its 0.7x P/S ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/S.
