SomnoMed Limited’s (ASX:SOM) 29% Dip In Price Shows Sentiment Is Matching Revenues
To the annoyance of some shareholders, SomnoMed Limited (ASX:SOM) shares are down a considerable 29% in the last month, which continues a horrid run for the company. Looking at the bigger picture, even after this poor month the stock is up 100% in the last year.
Following the heavy fall in price, SomnoMed may be sending very bullish signals at the moment with its price-to-sales (or “P/S”) ratio of 0.9x, since almost half of all companies in the Medical Equipment industry in Australia have P/S ratios greater than 3.5x and even P/S higher than 8x are not unusual. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s so limited.
We’ve discovered 3 warning signs about SomnoMed. View…
