Even the best stock pickers will make plenty of bad investments. Unfortunately, shareholders of China Fordoo Holdings Limited (HKG:2399) have suffered share price declines over the last year. The share price is down a hefty 53% in that time. We note that it has not been easy for shareholders over three years, either; the share price is down 45% in that time. It's down 57% in about a quarter. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.

Check out our latest analysis for China Fordoo Holdings

Because China Fordoo Holdings made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

China Fordoo Holdings's revenue didn't grow at all in the last year. In fact, it fell 38%. That looks pretty grim, at a glance. The share price drop of 53% is understandable given the company doesn't have profits to boast of. Having said that, if growth is coming in the future, the stock may have better days ahead. We don't generally like to own companies with falling revenues and no profits, so we're pretty cautious of this one, at the moment.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of China Fordoo Holdings's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between China Fordoo Holdings's total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that China Fordoo Holdings's TSR, which was a 53% drop over the last year, was not as bad as the share price return.

A Different Perspective

While the broader market lost about 6.5% in the twelve months, China Fordoo Holdings shareholders did even worse, losing 53%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 3.1% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand China Fordoo Holdings better, we need to consider many other factors. Even so, be aware that China Fordoo Holdings is showing 3 warning signs in our investment analysis , and 2 of those shouldn't be ignored...