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Wednesday, January 4, 2012

Potential Takeover Candidate? (TSE: CPX.TO)

Shares of CPX traded higher by 0.95% or $0.24/share to $25.55. Capital Power Corporation is trading at a price to book ratio of 1.14. This indicates that the shares are relatively cheap compared to book value which means the market is pricing in going concern value. The price to sales ratio came in at 0.7. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 172726 shares of CPX.TO exchange hands on a given day and today's volume is recorded at 104248. These factors combined may make this company a potential takeover candidate. Value investors may have an eye on this one, especially if the stock gets cheaper.