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ALN is priced at about 3.10 times |
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Released on Monday, September 26, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - American Lorain Corporation (AMEX:ALN) is a food preparation company, so it’s definitely out of the ordinary. The company’s primary production operations are in China but it services the United States.
The company is a near nano-cap with a market capitalization of only around $56 million and with a beta of 2.09 not only is this stock highly volatile it will tend to move with the market.
American Lorain has a fairly stable basis with an acid ratio of 1.65 and a current ratio of 3.68 with total assets of $174 million. Last quarter the company reported net income of $19 million dollars, leading to an earnings per share of $0.52, which is pretty decent for such a micro-cap stock.
ALN is priced at about 3.17 times earnings, which might indicate that it is undervalued, considering it total economic stability, it would be a stable company that has little chance of failure. One downside of this stock is the low amount of volume which moves through it on a daily basis which is only about 61,000 shares. However, the stock price appears to be a rock-bottom steal at only $1.65 per share at the markets close on Friday, September 23rd, 2011.
American Lorain might be a good micro-cap to possibly look at for a position and possibly hold a while, as it is trading near its 52-week low, so a rebound could be in the future. Also technicals, specifically the MACD, indicate that an upswing might be occurring over the next few days.
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