The past year has been a great time for Ghana Oil (GOIL) shareholders. The stock has roared 260% higher over the past twelve months, but high valuation multiples should give investors pause.
The past year has been a very good time to own Ghana Oil (GOIL) shares.
The stock has roared 260% higher over the past twelve months, propelled by high-octane earnings growth and a cheery outlook for the Ghanaian economy.
Today, the shares change hands at a price of GHS4.05 per stub, which gives the stock a price-t0-earnings ratio of 24.3. That’s a lofty level, and as I will argue below, I think it’s an indication that shareholders should begin looking for an exit ramp.
Continue reading “Are GOIL Shares Running Out of Gas?”