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.
Tuesday, May 08, 2007
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1 comment:
I own this stock, and am wondering how high do you see this stock could go in the next 3-5 years? It seems to be pretty stagnant. Do you reccomend doubling up or wait and see?
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