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Friday, October 14, 2011

Potential Takeover Candidate? (TSE: VT.TO)

Shares of VT traded higher by 1.31% or $0.14/share to $10.79. Viterra Inc. is trading at a price to book ratio of 1.02. 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 1.32. The price to sales ratio came in at 0.41. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 883455 shares of VT.TO exchange hands on a given day and today's volume is recorded at 369189. These financial metrics combined make this company seem undervalued. Value investors may have an eye on this one, especially if the stock gets cheaper.