Despite Fujian Rongji Software's share price surge, its declining revenue and high P/S ratio could pose a risk. The company's recent revenue trends suggest it may struggle to justify its P/S ratio, indicating prices may not be sustainable.
Fujian Rongji Software's high P/S ratio may be due to market expectations of future outperformance. However, with recent revenue decline and underperformance, share price may decline further. Current high prices may not be sustainable without improvement.
Fujian Rongji Software's shift to loss-making may be an overreaction, presenting a potential opportunity if recovery occurs. However, its poor performance over the past year and five-year period, with shareholders facing a 4% annual loss, calls for caution.
Fujian Rongji Software Stock Forum
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