What Cerro de Pasco Resources Inc.’s (CVE:CDPR) 34% Share Price Gain Is Not Telling You
Despite an already strong run, Cerro de Pasco Resources Inc. (CVE:CDPR) shares have been powering on, with a gain of 34% in the last thirty days. The last month tops off a massive increase of 142% in the last year.
Following the firm bounce in price, you could be forgiven for thinking Cerro de Pasco Resources is a stock to steer clear of with a price-to-sales ratios (or “P/S”) of 9.4x, considering almost half the companies in Canada’s Metals and Mining industry have P/S ratios below 3.1x. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s so lofty.
