Straco Corp is a theme facilities and aquarium operator in China that we talked about a fair bit in the past. Many still cannot fathom the edge this Singapore outfit is able to garner their results consistently, when we kept seeing similar ventures crumble. Today, we won’t focus on the business case of Straco nor the fact that its generating good cash flow and 11 cents of the current 31 cents are in cash. Lets see if there are any value to add at this price.

Straco’s PE

At the current EPS of $0.023, the price earnings ratio is 13 times. The earnings yield is 7.4%. That looks rather fairly valued. There are folks who would think that 13 times is fair there are those that will think its expensive. Certainly, for a small company, it should trade at a much lower multiple. In that case 13 times ......