Lippo China Resources Limited’s (HKG:156) 38% Share Price Surge Not Quite Adding Up
Lippo China Resources Limited (HKG:156) shares have continued their recent momentum with a 38% gain in the last month alone. Notwithstanding the latest gain, the annual share price return of 5.0% isn’t as impressive.
Since its price has surged higher, you could be forgiven for thinking Lippo China Resources is a stock not worth researching with a price-to-sales ratios (or “P/S”) of 1.2x, considering almost half the companies in Hong Kong’s Consumer Retailing industry have P/S ratios below 0.7x. However, the P/S might be high for a reason and it requires further investigation to determine if it’s justified.
