The high P/E ratio is alarming considering the company's recent medium-term earnings drop. Despite this, many investors retain their stock. However, if conditions don't improve, the share price may further decline. Current prices may not be sustainable given recent earnings trends.
Despite stock gaining a sizable percentage, the worrying underlying trends of declining returns are not indicative of a growth stock. Better investment opportunities may exist if these trends do not reverse.
Shanghai Xujiahui Commercial Stock Forum
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