Lam Soon (Hong Kong) Limited’s (HKG:411) 27% Price Boost Is Out Of Tune With Earnings
Despite an already strong run, Lam Soon (Hong Kong) Limited (HKG:411) shares have been powering on, with a gain of 27% in the last thirty days. The last 30 days bring the annual gain to a very sharp 44%.
Although its price has surged higher, there still wouldn’t be many who think Lam Soon (Hong Kong)’s price-to-earnings (or “P/E”) ratio of 11.7x is worth a mention when the median P/E in Hong Kong is similar at about 11x. Although, it’s not wise to simply ignore the P/E without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
