RE:New HighI have price/book at 0.60, which is absurdly cheap ... and that is with the valuable Glen Ewing property valued at cost. That kind of multiple is what i would expect for a company with a long history of weak earnings, and a declining sales trend. Hardly the case here.
I think we are still in the early innings of the pendulum swinging from growth to value. Blue chip value stocks have already bounced back strongly since last November. Small caps have yet to get much respect, but their time will come. And when it does, Hammond will be re-rated and will trade close to book ... which by next year ought to be right around $8 per share.
I expect the stock price to languish in a $4 - $4.50 trading range, then suddenly gain 20% or 30% in a couple days. This often happens with these deeply undervalued companies. There will be no time for momentum investors to climb aboard, unless they will be satisfied with a position of 100 or 200 shares. One should get invested now, rather than trying to get cute when the stock price springs to life.
My opinions only, as always.