This stock has cash balances c. 3x its market cap, and oil assets with an economic strike of USD 57. Why doesn't it flag up as a value stock?
Maybe simply because of one of the ratios (Price / Sales), which is quite high (> 30) at the moment.
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MGerard
3 comments
Edward Croft
Also it's loss making, so the earnings yield is negative. That counts against it too. The Value Rank doesn't like loss making companies.
Do note though that it's qualifying for 2 Ben Graham bargain screens... the NCAV and Net Net screens - so I wouldn't say it's not flagging as a value stock. Just depends through which lens you look.
MGerard
Thanks for the reply Ed. On further consideration I think the value rank is right here, although cash is currently a multiple of mcap, the company is loss making and burning cash. Management don't seem to have any intention or inventive to return cash to shareholders. So where is the value in that.
