Central Gold-Trust is an AMEX listed security that has been trading in a range between $21.15 and $27.36 over the past year. With 3,277,500 shares outstanding, a recent price of $24.64 gives a total market capitalization of $80,626,501. While there are certainly larger companies, Central Gold-Trust has definitely earned its place in the pack. Last year, Central Gold-Trust created $2.85 in earnings for every share outstanding.
Central Gold-Trust is currently priced by the market at 8.30 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 in excess of $1 a share, Central Gold-Trust is unlikely to be an interesting value proposition.
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