Khris,
As far as I know if a foreign company wishes to list their stock on
any of the american exchanges, they do have to comply with American
accounting practices (which by the way is said to be stricter than
many other countries). That is one of the reasons many foreign companies list their stock in London or Luxumburg,(as opposed to the
US exchanges) whose rules are said to be much more lenient than that the U.S.
I wish someone knew the book value of other companies in similar business with approx.same market capitalisation, so that we could
compare the book value and stock price and see how CHRB stands in
comparison to others.
In any event, the 'price to book' ratio seems very low (less than 1 )
by any measure in CHRB's case. It would seem more reasonable if
the stock traded around 2 to 3 times book value, but then again
without knowing the trend within the industry type,it would be useless
to forecast a reasonable stock price.
If CHRB's assets are valued at 'cost',and assuming the assets have
appreciated in value over the years, then we might be sitting on a
gold mine (hey,it could happen). On the other hand if the assets are
valued at market and prices have fallen since the valuation, the
book value might be overstated,and then we will have a problem, and
the current stock prices may very well be a reflection on this predicament. But any way, this is anybody's guess, at least in my case. |
