There’s Reason For Concern Over Seong An Materials Co.,Ltd’s (KRX:011300) Massive 28% Price Jump
Seong An Materials Co.,Ltd (KRX:011300) shareholders would be excited to see that the share price has had a great month, posting a 28% gain and recovering from prior weakness. Looking further back, the 24% rise over the last twelve months isn’t too bad notwithstanding the strength over the last 30 days.
After such a large jump in price, you could be forgiven for thinking Seong An MaterialsLtd is a stock to steer clear of with a price-to-sales ratios (or “P/S”) of 3.9x, considering almost half the companies in Korea’s Luxury industry have P/S ratios below 0.4x. However, the P/S might be quite high for a reason and it requires further investigation to determine if it’s justified.
