Despite an already strong run, Calibre Mining Corp. (TSE:CXB) shares have been powering on, with a gain of 27% in the last thirty days. The last 30 days bring the annual gain to a very sharp 91%.
Since its price has surged higher, given close to half the companies in Canada have price-to-earnings ratios (or “P/E’s”) below 15x, you may consider Calibre Mining as a stock to avoid entirely with its 33.2x P/E ratio. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
With earnings that are retreating more than the market’s of late, Calibre Mining has been very sluggish. It might be that many expect the dismal earnings performance to recover substantially, which has kept the P/E from collapsing. If not, then existing shareholders may be very nervous about the viability of the share price.
View our latest analysis for Calibre Mining
