Thursday, July 26, 2007

Crown Media Holdings Inc

Crown Media Holdings Inc is a NASDAQ listed security that has been trading in a range between $2.94 and $8.00 over the past year. With 104,788,100 shares outstanding, a recent price of $7.11 gives a total market capitalization of $728,277,275. While there are certainly larger companies, Crown Media Holdings Inc has definitely earned its place in the pack. Last year, Crown Media Holdings Inc created $-3.64 in earnings for every share outstanding.

Crown Media Holdings Inc is currently priced by the market at 0.00 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, Crown Media Holdings Inc is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.

0 comments: