Thalassa Holdings: Is there now an opportunity in THAL?

 

 

 

Thalassa Holdings: Is there now an opportunity in THAL?

Thalassa Holdings Limited (AIM:THAL), an energy company based in British Virgin Islands, received a lot of attention from a substantial price increase on the AIM in the over the last few months. Less covered, small-stocks like THAL sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could THAL still be trading at a low price relative to its actual value? Let’s take a look at THAL’s outlook and value based on the most recent financial data to see if the opportunity still exists.

What is THAL worth?

Great news for investors – THAL is still trading at a fairly cheap price. I’ve used the price-to-equity ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 11.6x is currently well-below the industry average of 58.4x, meaning that it is trading at a cheaper price relative to its peers. Although, there may be another chance to buy again in the future. This is because THAL’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, THAL’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

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