Thursday, July 19, 2007

Tri-Valley Corporation

Tri-Valley Corporation is an AMEX listed security that has been trading in a range between $5.80 and $10.20 over the past year. With 24,609,570 shares outstanding, a recent price of $7.60 gives a total market capitalization of $187,278,831. While there are certainly larger companies, Tri-Valley Corporation has definitely earned its place in the pack. Last year, Tri-Valley Corporation created $0.00 in earnings for every share outstanding.

Tri-Valley Corporation 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, Tri-Valley Corporation is unlikely to be an interesting value proposition.

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