Bidstack Group Plc (LON:BIDS) shareholders have seen the share price descend 24% over the month. But that cannot eclipse the spectacular share price rise we've seen over the last twelve months. Few could complain about the impressive 325% rise, throughout the period. So it is not that surprising to see the stock retrace a little. Only time will tell if there is still too much optimism currently reflected in the share price.
View our latest analysis for Bidstack Group
Bidstack Group recorded just UK£316,906 in revenue over the last twelve months, which isn't really enough for us to consider it to have a proven product. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. Investors will be hoping that Bidstack Group can make progress and gain better traction for the business, before it runs low on cash.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Of course, if you time it right, high risk investments like this can really pay off, as Bidstack Group investors might know.
When it reported in December 2018 Bidstack Group had minimal cash in excess of all liabilities consider its expenditure: just UK£1.7m to be specific. So if it hasn't remedied the situation already, it will almost certainly have to raise more capital soon. Given how low on cash the it got, investors must really like its potential for the share price to be up 325% in the last year. You can see in the image below, how Bidstack Group's cash levels have changed over time (click to see the values). The image below shows how Bidstack Group's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. Given that situation, many of the best investors like to check if insiders have been buying shares. It's usually a positive if they have, as it may indicate they see value in the stock. Luckily we are in a position to provide you with this free chart of insider buying (and selling).
A Different Perspective
Bidstack Group boasts a total shareholder return of 325% for the last year. Unfortunately the share price is down 16% over the last quarter. Shorter term share price moves often don't signify much about the business itself. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.