What Solomon Systech (International) Limited’s (HKG:2878) 30% Share Price Gain Is Not Telling You
Solomon Systech (International) Limited (HKG:2878) shares have continued their recent momentum with a 30% gain in the last month alone. The last 30 days bring the annual gain to a very sharp 56%.
Following the firm bounce in price, given close to half the companies in Hong Kong have price-to-earnings ratios (or “P/E’s”) below 12x, you may consider Solomon Systech (International) as a stock to avoid entirely with its 30.4x P/E ratio. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
For example, consider that Solomon Systech…
