Wednesday, August 1, 2007


AETERNA ZENTARIS INC is a NASDAQ listed security that has been trading in a range between $2.90 and $6.18 over the past year. With 53,179,470 shares outstanding, a recent price of $3.04 gives a total market capitalization of $167,515,336. While there are certainly larger companies, AETERNA ZENTARIS INC has definitely earned its place in the pack. Last year, AETERNA ZENTARIS INC created $0.56 in earnings for every share outstanding.

AETERNA ZENTARIS INC is currently priced by the market at 22.10 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, AETERNA ZENTARIS INC could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.