I have written several times before about China Ouhua Winery, and not exactly in "glowing terms". To be more exact, I haven't found a single positive aspect regarding this company.
I was therefore rather surprised when I noticed the following:
According to the website of The Edge, Fundamental Score is defined as:
The Fundamental Score is a snapshot of a company’s fundamental strength, derived from historical numbers. For those who are not familiar with financial jargons, we have condensed some of the most often-used ratios into this "Score" to reflect a company’s profitability and balance sheet strength.
The Fundamental Score ranges from 0 to 3 for easy understanding. A score of 0 means weak fundamentals and a score of 3 means strong fundamentals.
The definition of the Valuation Score is as follows:
If you are unfamiliar with financial jargons, we have condensed several of the most-often used valuation benchmarks into a Valuation Score of 0 to 3 – to determine if a stock is attractively valued or not, at this point in time.
A Valuation Score of 0 means valuations are not attractive. Vice versa, a score of 3 means valuations are attractive.
That means that China Ouhua has a fundamental strength (1.80) that is better than average and a somewhat attractive valuation (0.90).
Somewhere in the database and/or algorithms of The Edge, something must have gone horribly wrong.
Surely both the fundamental and valuation score for China Ouhua have to be 0.00.
For more background on the company and to get a flavour what this company is about (hint: managing the winery is not exacty their forte), please check the previous articles.