Central Fund of Canada Limited

Central Fund of Canada Limited is an AMEX listed security that has been trading in a range between $7.84 and $10.33 over the past year. With 113,334,500 shares outstanding, a recent price of $9.36 gives a total market capitalization of $1,061,944,252. While there are certainly larger companies, Central Fund of Canada Limited has definitely earned its place in the pack. Last year, Central Fund of Canada Limited created $0.44 in earnings for every share outstanding.

Central Fund of Canada Limited is currently priced by the market at 21.10 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 under $50 a share and earnings per share below $1 a share, Central Fund of Canada Limited could be an interesting value proposition.