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Tuesday, August 9, 2011

Potential Takeover Candidate? (NASDAQ: NETC)

Shares of NETC traded higher by 0.59% or $0.05/share to $8.55. Net Servi is trading at a price to book ratio of 1.15. This indicates that the shares are relatively cheap compared to book value which means the market is pricing in going concern value. The PEG is 1.02 suggesting that the shares are attractively priced relative to the firm's growth rate. The price to sales ratio came in at 0.77. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 14736 shares of NETC exchange hands on a given day and today's volume is recorded at 8550. These financial metrics combined make this company seem undervalued. Value investors may have an eye on this one, especially if the stock gets cheaper.

Net Servicos de Comunicacao S.A. (Net Servicos) is a multiservice company in the pay-television and broadband Internet industries in Brazil.