JOONGANG ADVANCED MATERIALS Co., Ltd.’s (KOSDAQ:051980) 27% Share Price Surge Not Quite Adding Up
JOONGANG ADVANCED MATERIALS Co., Ltd. (KOSDAQ:051980) shareholders are no doubt pleased to see that the share price has bounced 27% in the last month, although it is still struggling to make up recently lost ground. But the gains over the last month weren’t enough to make shareholders whole, as the share price is still down 8.5% in the last twelve months.
Since its price has surged higher, given around half the companies in Korea’s Communications industry have price-to-sales ratios (or “P/S”) below 0.9x, you may consider JOONGANG ADVANCED MATERIALS as a stock to avoid entirely with its 23.9x P/S ratio. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s so lofty.
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