There’s Reason For Concern Over Point Mobile Co., Ltd.’s (KOSDAQ:318020) Massive 29% Price Jump
Point Mobile Co., Ltd. (KOSDAQ:318020) shareholders would be excited to see that the share price has had a great month, posting a 29% gain and recovering from prior weakness. Still, the 30-day jump doesn’t change the fact that longer term shareholders have seen their stock decimated by the 54% share price drop in the last twelve months.
After such a large jump in price, given close to half the companies in Korea have price-to-earnings ratios (or “P/E’s”) below 11x, you may consider Point Mobile as a stock to avoid entirely with its 28.2x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
We’ve discovered 2 warning signs about Point Mobile. View them…
