In the market, the shares of the company are trading at 16 cents a share. With 250 million shares outstanding, the company has a market capitalisation of $40 million. That works out to be 6.4 times its historical earnings, and four times your expected earnings for this year.
In the meantime, the company continues to execute on its strategy and is doing all the right things amid a conducive macro environment. It again delivers a strong set of earnings.
That convinces a few analysts who begin to issue research reports on the company. Professional fund managers also start to buy the stock on expectation of its 30 per cent earnings growth next year.
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