Monterey Gourmet Foods Inc. is a NASDAQ listed security that has been trading in a range between $3.61 and $5.20 over the past year. With 17,323,030 shares outstanding, a recent price of $3.77 gives a total market capitalization of $69,985,041. While there are certainly larger companies, Monterey Gourmet Foods Inc. has definitely earned its place in the pack. Last year, Monterey Gourmet Foods Inc. created $-0.17 in earnings for every share outstanding.
Monterey Gourmet Foods 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, Monterey Gourmet Foods 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.
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