Cathay Merchant Group, Inc. is an AMEX listed security that has been trading in a range between $0.23 and $0.77 over the past year. With 18,890,580 shares outstanding, a recent price of $0.45 gives a total market capitalization of $8,311,855. While there are certainly larger companies, Cathay Merchant Group, Inc. has definitely earned its place in the pack. Last year, Cathay Merchant Group, Inc. created $-0.09 in earnings for every share outstanding.
Cathay Merchant Group, 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, Cathay Merchant Group, Inc. is unlikely to be an interesting value proposition.
Showing posts with label Europe. Show all posts
Showing posts with label Europe. Show all posts
Sunday, July 15, 2007
Wednesday, April 18, 2007
Dollar at Record Lows, Europe Unconcerned
Reuters reports that the dollar has fallen to a 26-year low against the British pound sterling and is nearing the lowest levels against the euro in 2 years. The abrupt change in exchange rates has been driven by concerns about slowing US growth and the spectre of lower interest rates at home compared with higher rates abroad.
The Euro zone has been receiving much more cheerleading from the press of late. The New York Times and others have recently remarked on the resurgent strength of Germany - where unemployment may fall below 9% if the current strength continues. A recent article even went so far as to observe that Chinese entrepreneurs are forsaking America for Europe. Unfortunately, as even the most ebullient euro-boosters must note, Germany's recent spate of economic growth has been driven by wild successes in niche markets. Sensors for lasers and satellite parts for Boeing are certainly growth opportunities, but Germany as a whole and certainly no other large economy can base its growth on niche manufacturing.
The manufacturing lobby in the United States has been arguing hard for a sharply reduced currency to boost exports, but now that it has finally arrived they are strangely silent. Even in the face of such favorable economic conditions, no one seriously expects all those outsourced jobs to miraculously return.
Economists will tell anyone who listens that in the long run, fluctuations in the value of currency between widely held, freely traded alternatives are irrelevant to growth rates and have a neutral effect on the economy. But as journalists are so fond of quoting Keynes, "In the long run we are all dead".
The Euro zone has been receiving much more cheerleading from the press of late. The New York Times and others have recently remarked on the resurgent strength of Germany - where unemployment may fall below 9% if the current strength continues. A recent article even went so far as to observe that Chinese entrepreneurs are forsaking America for Europe. Unfortunately, as even the most ebullient euro-boosters must note, Germany's recent spate of economic growth has been driven by wild successes in niche markets. Sensors for lasers and satellite parts for Boeing are certainly growth opportunities, but Germany as a whole and certainly no other large economy can base its growth on niche manufacturing.
The manufacturing lobby in the United States has been arguing hard for a sharply reduced currency to boost exports, but now that it has finally arrived they are strangely silent. Even in the face of such favorable economic conditions, no one seriously expects all those outsourced jobs to miraculously return.
Economists will tell anyone who listens that in the long run, fluctuations in the value of currency between widely held, freely traded alternatives are irrelevant to growth rates and have a neutral effect on the economy. But as journalists are so fond of quoting Keynes, "In the long run we are all dead".
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