Erratum and Update on CIWT’s Valuation Ratios

Yesterday I wrote about CIWT's (China Industrial Waste Management) valuation and growth prospects. In particular, I stressed that this is a cash cow with a Cash/Equity ratio of 57.9% as of 12/31/2006.

That is all good. However, the Price/Cash ratio listed in the Valuation Ratios table (Table 3) was wrong. The value listed was 10.98, when correct value should be 3.46 (based on May 4’s close of $1.48). Essentially the cash content in each share was incorrectly understated by a factor of 3.17.

Here is the corrected table.



And here are the same ratios computed based on today’s (5/8/07) close ($2.40).



Happy investing to everyone!

Disclosure: the author owns CIWT as of this writing.