China RuiTai International Holdings Co., Ltd. (OTC:CRUI) continues to trade in a price channel, but it recorded extraordinary volume during the last couple of sessions after the company held a presentation for potential investors.
The presentation updated the current shareholders and worked as an encouragement for traders to consider the thinly trading stock of CRUI.
China RuiTai isn’t an ordinary penny stock . The firm has solid revenues and profits, their balance sheet looks healthy and there is no dilution to shareholders at the moment. The company had a considerable 13.1% drop in the revenues in 2009, but the presentation suggested a 20.4% growth to follow in 2010. [BANNER]
The holding company of a non-ionic cellulose ether producer retains a market value of nearly $22 million, which is slightly below the net tangible assets. Price to sales ratio is at 0.54, price to book is at 0.86, all these values indicating stock undervaluation. TTM P/E of only 3.47 also suggests still plenty of space for growth, though it mainly indicates comparatively small net profit margins, which is a natural thing for manufacturing business.
The stock trades low because of the very thin market as most of the outstanding shares (87.8%) are owned by the management, leaving only 2.56 million free trading shares. Usually, such a small float means sudden changes in the share price as the stock is rather hard to come by.
