I was honored to have been chosen as a judge for CanTech Letter's Canadian Tech Stock of The Year. The company I voted for ended up taking home the top honors. Interestingly enough, it was a value stock when the year began, and saw tremendous price appreciation throughout 2010. Therefore, I did a write-up of the company (reproduced below) identifying its value traits to help us recognize similar situations in existence today: Glentel generates most of its revenue from selling mobile phones and related items through retail stores in shopping malls and other locations. Twelve months ago, the company traded for $150 million despite $30 million of cash, negligible debt, and trailing 12-month earnings of $12 million. Therefore, adjusted for its cash balance, the company traded at a P/E of 10.Glentel (GLNIF.PK) has seen its stock rise by approximately 100% in the last 12 months. Usually, stocks that see such sharp price increases have a speculative element to them that precludes long-term investors from participating. But this is not the case for Glentel, a company that traded at a low P/E twelve months ago, and yet generated strong returns on equity; instead, Glentel's stock performance illustrates how value investors can profit from such companies in two ways: earnings growth, and multiple expansion. When these two forces combine, as they did with Glentel over the past year, returns for investors can be phenomenal.
Complete Story »
Bianca Kajlich Giulianna Ramirez Ashley Greene April Scott Mia Kirshner
No comments:
Post a Comment