Discussion of Shareholders' Value and Investors' Awareness...
What's a fair PE Ratio for AFH?
Market Guide, on July 2, 2001, provided a Ratio Comparison Table, showing that AFBR's PE was approximately 1/3 that of the Industry, the Sector and the S&P 500. This Table suggests that, to match the industry standard PE, AFBR's closing price on that date would need to approximately treble, based on trailing Earnings.
RATIO COMPARISON
Valuation Ratios Company Industry Sector S&P 500
P/E Ratio (TTM) 10.23 38.01 27.69 27.70
P/E High - Last 5 Yrs. NA 49.82 35.91 49.74
P/E Low - Last 5 Yrs. NA 9.42 11.27 16.78
It seems obvious that, although one reputed Mutual Fund - GMO Currency Hedged International Core Fund: biz.yahoo.com
- has seen Value in owning 19% of AFBR shares outstanding, most investors are not aware of the Company. To remedy this situation, the Company is now intent on exploring a number of options.
- AMEX Listing
AFBR currently meets and exceeds all the requirements to list on AMEX, except for its share price, which should be a minimum of $3.00. An AMEX listing could potentially lead to Analysts coverage and more Institutional interest.
- European Listing
With the proximity of China's entrance into the WTO, a listing on the Berlin and/or Frankfurt Exchanges could be a logical move to expose the Company to new Investors with a keen interest in China.
- Appointment of IR and PR Firms
A long term relationship with reputed IR and PR Firms in the US and Europe, to provide information and support to investors will also be taken into consideration. |
