Tuesday, July 31, 2007

Arden Group Inc.

Arden Group Inc. is a NASDAQ listed security that has been trading in a range between $97.79 and $144.05 over the past year. With 3,161,100 shares outstanding, a recent price of $134.95 gives a total market capitalization of $438,602,625. While there are certainly larger companies, Arden Group Inc. has definitely earned its place in the pack. Last year, Arden Group Inc. created $7.62 in earnings for every share outstanding.

Arden Group Inc. is currently priced by the market at 17.70 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price over $50 a share and earnings per share in excess of $1 a share, Arden Group Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.