Why Investors Shouldn’t Be Surprised By Lotte Chemical Titan Holding Berhad’s (KLSE:LCTITAN) 25% Share Price Plunge
The Lotte Chemical Titan Holding Berhad (KLSE:LCTITAN) share price has softened a substantial 25% over the previous 30 days, handing back much of the gains the stock has made lately. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 46% in that time.
After such a large drop in price, it would be understandable if you think Lotte Chemical Titan Holding Berhad is a stock with good investment prospects with a price-to-sales ratios (or “P/S”) of 0.2x, considering almost half the companies in Malaysia’s Chemicals industry have P/S ratios above 0.8x. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s limited.
