Current ValuationI've been a great supporter of ZPP, but admittedly sold on this recent runup as it reached prices beyond my expectations. I'm having a hard time understanding the current valuations given to the company. It's currently trading at 17.5 X trailing earnings. If there was the prospects of growth going forward, I could understand current prices, but in the year end financials / MD&A, management stated that they expected organic growth to be flat and looking at the Q1 financials, this seems to be the case with sales down and earnings flat (nil), albeit with slightly increased revenue.
In current markets, can these valuations be sustained? Are investors hoping cash is deployed for an acquisition to produce growth? Did the stock simply run beyond its fundamentals (overbought)? Curious to hear from others.
Have a great long weekend!