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Thursday, June 27, 2013

Potential Takeover Candidate? (TSE: RON.TO)

Shares of RON traded higher by 1.24% or $0.12/share to $9.83. TSE is trading at a price to book ratio of 0.73. This indicates that the value of the company's underlying assets exceeds today's market price. The PEG is 1.5. The price to sales ratio came in at 0.24. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 126077 shares of RON.TO exchange hands on a given day and today's volume is recorded at 115511. These financial metrics combined make this company seem undervalued. Value investors may have an eye on this one, especially if the stock gets cheaper.