Winson Holdings Hong Kong Limited’s (HKG:6812) 26% Share Price Surge Not Quite Adding Up
The Winson Holdings Hong Kong Limited (HKG:6812) share price has done very well over the last month, posting an excellent gain of 26%. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 19% in the last twelve months.
In spite of the firm bounce in price, it’s still not a stretch to say that Winson Holdings Hong Kong’s price-to-sales (or “P/S”) ratio of 0.2x right now seems quite “middle-of-the-road” compared to the Commercial Services industry in Hong Kong, where the median P/S ratio is around 0.5x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
