Anhui Golden Seed Winery's high P/S ratio is backed by strong future revenues. Shareholders' confidence in the company's future revenues is keeping the P/S high. Strong revenue forecasts should keep the share price buoyant, unless analysts have missed the mark.
The current stock price may not accurately reflect its intrinsic value. Potential investors may reconsider investing, and current shareholders might think about selling now and repurchasing when the price drops.
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