There’s Reason For Concern Over The E&M Co., Ltd.’s (KOSDAQ:089230) Massive 34% Price Jump
The E&M Co., Ltd. (KOSDAQ:089230) shareholders would be excited to see that the share price has had a great month, posting a 34% gain and recovering from prior weakness. While recent buyers may be laughing, long-term holders might not be as pleased since the recent gain only brings the stock back to where it started a year ago.
In spite of the firm bounce in price, there still wouldn’t be many who think E&M’s price-to-sales (or “P/S”) ratio of 1.7x is worth a mention when the median P/S in Korea’s Entertainment industry is similar at about 2x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
