NASDAQ:CHCI
$0.88
(3/16 4:00PM)
+6.0%
| Open | $0.82 |
Mkt Cap | $13.0 Million |
| High | $0.89 |
52Wk High | $1.34 |
| Low | $0.82 |
52Wk Low | $0.11 |
| Volume | 20,366 |
Avg Vol 10D | 53,100 |
A Word Of Caution
Stocks trading for less than $1 are loosely termed "penny" stocks. Comstock Homebuilding Company (CHCI) is selling for less than $1 per share. While we stand by our ratings methodology for long term value investors, often times "penny" stocks can be more volatile. Because many "penny" stocks are lightly traded their stock price can fluctuate because of a single large trade. Also, there is generally less analyst coverage of such "penny" stocks and thus less information from which to base our rating.
While this company may not get as much press because of its low stock price, please take a moment to look at the RazorWire feed on the right hand side of the report. Each time Comstock Homebuilding Co is mentioned on business television or influential blogs recently should be displayed. This helps to bring you up to speed on any major issues they are facing right now.
Therefore, (and as always), check additional sources and available information regarding Comstock Homebuilding Co before making an investment decision.
Ockham's Rating/Recommendation Summary
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CHCI Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 7 years. For, CHCI the high and low end of the Price to Sales per share ratios are 1.10x and 0.29x respectively.
Notice that CHCI's current Price to Sales per share ratio is 0.58x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $0.83, CHCI is 18% below where we would expect to see it. This will beneficially factor into our final analysis of CHCI as it is not often that this stock sinks to these levels.
CHCI Cash Earnings
Price to Cash Earnings analysis is inappropriate for this company due to an insufficient positive cash earnings history. Rather than calculating a potentially misleading Price to Cash Earnings analysis, we have chosen to give CHCI a neutral Price to Cash Earnings outlook at this time. However, we should point out that this metric is a significant element in Ockham’s methodology to analyzing the outlook for any company. Therefore, for CHCI, our assessment is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.
CHCI Dividends
While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company. As of the time of this report, our data provider does not have historical data for CHCI. Therefore, we are not utilizing the dividends portion in our study. So, we do not know whether CHCI currently pays a dividend at present or not, we have an "expected dividend" payment listed in key fundamentals but cannot varify it.
