Despite an already strong run, Shanghai Conant Optical Co., Ltd. (HKG:2276) shares have been powering on, with a gain of 32% in the last thirty days. The last month tops off a massive increase of 295% in the last year.
Following the firm bounce in price, Shanghai Conant Optical may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 48x, since almost half of all companies in Hong Kong have P/E ratios under 11x and even P/E’s lower than 7x are not unusual. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
Shanghai Conant Optical certainly has been doing a good job lately as it’s been growing earnings more…
