What GL-Carlink Technology Holding Limited’s (HKG:2531) 52% Share Price Gain Is Not Telling You
GL-Carlink Technology Holding Limited (HKG:2531) shareholders are no doubt pleased to see that the share price has bounced 52% in the last month, although it is still struggling to make up recently lost ground. 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.
Since its price has surged higher, when almost half of the companies in Hong Kong’s Software industry have price-to-sales ratios (or “P/S”) below 1.9x, you may consider GL-Carlink Technology Holding as a stock not worth researching with its 5.9x P/S ratio. However, the P/S might be quite high for a reason and it requires further investigation to determine if it’s justified.
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