There’s Reason For Concern Over NF Holdings Corporation’s (TSE:6864) Massive 28% Price Jump
Those holding NF Holdings Corporation (TSE:6864) shares would be relieved that the share price has rebounded 28% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Longer-term shareholders would be thankful for the recovery in the share price since it’s now virtually flat for the year after the recent bounce.
Following the firm bounce in price, given close to half the companies in Japan have price-to-earnings ratios (or “P/E’s”) below 12x, you may consider NF Holdings as a stock to avoid entirely with its 20x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.
