Despite Xinglong Holding (Group)'s recent share price weakness, its P/S ratio remains high, possibly due to expectations of future outperformance. However, if this doesn't materialize, investors may overpay. The recent medium-term revenue decline could risk shareholders' investments and make the current stock value hard to accept for prospective investors.
The company's declining revenue and share price hint at potential funding challenges. Investors are advised to ensure they're investing in a high-quality business. Be aware of the company's 2 warning signs before investing.
Xinglong's high P/S ratio, amid falling revenues, hints at investors banking on a turnaround despite weak growth. Prolonged revenue underperformance might shake investor faith in current valuations, potentially affecting the stock price.
Xinlong Holding(Group)Company Stock Forum
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