If you pull a list of shipping stocks and then rank them from lowest to highest by their reported P/E ratio, PSHG floats to the top.
There’s not much recent news for the company, and what there is can be found here. PSHG - Performance Shipping Inc Stock Price and Quote What might be of more interest to a Ben Graham-style value investor is the company’s fundamentals, which can be summarized in three areas: Valuation, Growth, and Health.
At its current price of $2.05, PSGH is trading at a 96.5% discount to its cash flow value of $58.49. Its future earnings growth rate is estimated to be 16.3% compared to the Shipping Industry’s growth rate of 3.7%. PHGH’s financial health looks good, with ST and LT asset both more than covering its ST and LT liabilities.
The only matter of concern is its price chart. The time to have bought PSHG was months ago as it came off a bottom back in April. In other words, though a good company PSHG might be, its ship seems to have already sailed.
I am no Graham expert, but I believe he would be very disappointed in your shallow analysis on this pick.
Strike 1: PSHG is cheap for a good reason. Among the reasons a 1-for-15 reverse stock split in Nov 2022.
And in case you say, “Hohum, so what?”
Strike 2: Another reverse stock split 1-for-10 in Nov 2020
Do you really think Graham would ignore two reverse stock splits that occurred over a 5 year time.
And if you are still defiant – there is a Strike 3 and possibly a Strike 4
What about the word “might” in the subject line of the opening post do you not understand? And why your emotionally-driven comments on the post?
If the point of these forums is discussion, then discuss. Lay out a case why or why not PSHG could/should be bought. That’s what Arindam did. He identified a stock with a low P/E and laid out reasons why it might be attractive to a value investor, which are that PSHG’s fundamentals are decent, even very attractive.
But what Arindam also pointed out is PSHG’s present price compared to where it has traded in the recent past. He suggested that PSGH’s ship had sailed, which was a clever metaphor. Maybe it’s also time you move on as well with this thread.
