Thursday, July 19, 2007

The Stephan Co.

The Stephan Co. is an AMEX listed security that has been trading in a range between $2.83 and $5.00 over the past year. With 4,389,800 shares outstanding, a recent price of $4.18 gives a total market capitalization of $18,481,058. While there are certainly larger companies, The Stephan Co. has definitely earned its place in the pack. Last year, The Stephan Co. created $-0.82 in earnings for every share outstanding.

The Stephan Co. 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, The Stephan Co. is unlikely to be an interesting value proposition.

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