Why Investors Shouldn’t Be Surprised By Tenaz Energy Corp.’s (TSE:TNZ) 29% Share Price Surge
Tenaz Energy Corp. (TSE:TNZ) shareholders would be excited to see that the share price has had a great month, posting a 29% gain and recovering from prior weakness. The annual gain comes to 281% following the latest surge, making investors sit up and take notice.
After such a large jump in price, given around half the companies in Canada’s Oil and Gas industry have price-to-sales ratios (or “P/S”) below 1.9x, you may consider Tenaz Energy as a stock to avoid entirely with its 7.2x P/S ratio. 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.
