Wednesday, August 1, 2007

21st Century Holding Co.

21st Century Holding Co. is a NASDAQ listed security that has been trading in a range between $9.74 and $33.75 over the past year. With 8,023,640 shares outstanding, a recent price of $11.00 gives a total market capitalization of $91,389,262. While there are certainly larger companies, 21st Century Holding Co. has definitely earned its place in the pack. Last year, 21st Century Holding Co. created $1.21 in earnings for every share outstanding.

21st Century Holding Co. is currently priced by the market at 9.10 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 in excess of $1 a share, 21st Century Holding Co. is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.