Comba Telecom Systems Holdings Limited’s (HKG:2342) 36% Price Boost Is Out Of Tune With Revenues

Despite an already strong run, Comba Telecom Systems Holdings Limited (HKG:2342) shares have been powering on, with a gain of 36% in the last thirty days. The last month tops off a massive increase of 130% in the last year.

After such a large jump in price, you could be forgiven for thinking Comba Telecom Systems Holdings is a stock not worth researching with a price-to-sales ratios (or “P/S”) of 1.7x, considering almost half the companies in Hong Kong’s Communications industry have P/S ratios below 0.6x. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s as high as it is.

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