MAXXAM Inc.

MAXXAM Inc. is an AMEX listed security that has been trading in a range between $25.20 and $32.00 over the past year. With 5,251,120 shares outstanding, a recent price of $28.45 gives a total market capitalization of $150,602,123. While there are certainly larger companies, MAXXAM Inc. has definitely earned its place in the pack. Last year, MAXXAM Inc. created $60.64 in earnings for every share outstanding.

MAXXAM Inc. is currently priced by the market at 0.50 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, MAXXAM Inc. is unlikely to be an interesting value proposition.