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Thursday, January 3, 2013

Potential Takeover Candidate? (NYSE: GMK)

Shares of GMK traded higher by 0.24% or $0.03/share to $12.35. NYSE is trading at a price to book ratio of 1.56. The PEG is 0.4 suggesting that the shares are trading at an excellent value relative to firm's growth rate. The price to sales ratio came in at 0.34. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 11670 shares of GMK exchange hands on a given day and today's volume is recorded at 6400. These financial metrics combined make this company seem undervalued. Value investors may have an eye on this one, especially if the stock gets cheaper.

Gruma SAB de CV (GRUMA) is a Mexico-based company engaged, through its subsidiaries, in the production, distribution and sale of corn flour.