Pak Tak International Limited’s (HKG:2668) 71% Share Price Plunge Could Signal Some Risk
The Pak Tak International Limited (HKG:2668) share price has fared very poorly over the last month, falling by a substantial 71%. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 88% loss during that time.
Although its price has dipped substantially, it’s still not a stretch to say that Pak Tak International’s price-to-sales (or “P/S”) ratio of 0.5x right now seems quite “middle-of-the-road” compared to the Luxury industry in Hong Kong, seeing as it matches the P/S ratio of the wider industry. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
