What HBM Holdings Limited’s (HKG:2142) 51% Share Price Gain Is Not Telling You
Despite an already strong run, HBM Holdings Limited (HKG:2142) shares have been powering on, with a gain of 51% in the last thirty days. The last 30 days were the cherry on top of the stock’s 472% gain in the last year, which is nothing short of spectacular.
Since its price has surged higher, HBM Holdings may be sending strong sell signals at present with a price-to-sales (or “P/S”) ratio of 23.1x, when you consider almost half of the companies in the Biotechs industry in Hong Kong have P/S ratios under 10.7x and even P/S lower than 4x aren’t out of the ordinary. 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.
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