In an earlier post I wrote about a couple of stocks I've bought with low Price to Book ratios. One of those stocks - as of that writing - had a P/B of 0.86.
As of this writing it has a P/B of 1.01.
The good news is that the price did come up some. Before the market opened it had climbed to a P/B of 0.89.
However the company has just released it's quarterly report, and evidently the numbers aren't great. In fact, the book value of the company has decreased a bit, resulting in the new P/B of 1.01.
As best I can determine, the Book value will not change for another quarter. The price will, of course, shift daily.
The good news is, then, that this stock's P/B looks a bit more healthy.
The bad news is that the stock is still worth less than it was when I bought it (although more than it was last week).
Disclosure: I'm talking about Plug Power Inc (NasdaqGM: PLUG). I own 100 shares. I know I bought my shares for $2.62 per share. I must have bought my shares in late June.
Quoting Yahoo! Finance, PLUG is a "development stage company" that make Fuel Cell and other energy storage devices. "Development stage" means that if you're going to invest, you should take a long position. It's going to be a while before the company is profitable.
I'm not much of a long position investor. But I know energy storage is going to be one of the biggest issues in the future. I guess I find myself taking a longer position in this one, now. The fundamentals still look good. I think the stock will go up.
That being said, my sell order is in for $4 a share.
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