Q: Recently, Accord Financial has been hitting lower lows. Is it oversold and likely to rise again, or should it be avoided? The P/B is 0.2.
5i Research Answer:
With such a tiny company, we would caution against looking too closely at ratios. The market cap is a very-risky $13M, and shares are down 60% this year. The company is in the midst of a restructuring of its debt and recently got an 8-day extension on its credit facility. Default is a possibility here. We would absolutely avoid this.