Suzhou Centec Communications' high P/S ratio may indicate strong sell signals. Despite good recent performance, less than stellar revenue forecasts could risk a share price decline, potentially lowering P/S figures. Investors should remain cautious.
The company's breakeven point is contingent on maintaining an extremely buoyant growth rate. High level of debt increases the risk of investing in this loss-making company.
Investors expect strong revenue performance, reflected in high P/S ratio. However, company's lower forecast growth than industry may disappoint if P/S aligns with growth outlook. Caution advised at these price levels due to high P/S and predicted revenues.
Suzhou Centec Communications Stock Forum
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