Tuesday, August 7, 2007

Medis Technologies Ltd.

Medis Technologies Ltd. is a NASDAQ listed security that has been trading in a range between $10.00 and $30.64 over the past year. With 34,949,360 shares outstanding, a recent price of $10.89 gives a total market capitalization of $356,832,967. While there are certainly larger companies, Medis Technologies Ltd. has definitely earned its place in the pack. Last year, Medis Technologies Ltd. created $-1.13 in earnings for every share outstanding.

Medis Technologies Ltd. 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, Medis Technologies Ltd. is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.