What Harvest Miracle Capital Berhad’s (KLSE:HM) 35% Share Price Gain Is Not Telling You
Harvest Miracle Capital Berhad (KLSE:HM) shareholders would be excited to see that the share price has had a great month, posting a 35% gain and recovering from prior weakness. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 42% in the last twelve months.
Since its price has surged higher, given close to half the companies operating in Malaysia’s Electronic industry have price-to-sales ratios (or “P/S”) below 1x, you may consider Harvest Miracle Capital Berhad as a stock to potentially avoid with its 2.5x P/S ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/S.
