With today's increase in share price (to 21p), Haike Chemical (HAIK) still has a PSR of only 0.02 - making it very good value. So what's the catch (if any)?
Well some people have noted that the borrowings are very high and that a large proportion are short-term. In the UK, this would be very bad news as these loans are "callable". However, in china, with the banks being more stable (and cash rich by omparison with the UK) there is less risk.
On a book value basis, the Company also looks good value. What do you think?
Monday 9 August 2010
Subscribe to:
Posts (Atom)
