Thursday, July 19, 2007

Orchids Paper Products Company

Orchids Paper Products Company is an AMEX listed security that has been trading in a range between $5.00 and $11.48 over the past year. With 6,234,350 shares outstanding, a recent price of $5.45 gives a total market capitalization of $33,977,206. While there are certainly larger companies, Orchids Paper Products Company has definitely earned its place in the pack. Last year, Orchids Paper Products Company created $0.06 in earnings for every share outstanding.

Orchids Paper Products Company is currently priced by the market at 94.30 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, Orchids Paper Products Company could be an interesting value proposition.

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