It's not a secret that every investor will make bad investments, from time to time. But it's not unreasonable to try to avoid truly shocking capital losses. So spare a thought for the long term shareholders of Chanhigh Holdings Limited (HKG:2017); the share price is down a whopping 76% in the last twelve months. While some investors are willing to stomach this sort of loss, they are usually professionals who spread their bets thinly. We wouldn't rush to judgement on Chanhigh Holdings because we don't have a long term history to look at. Shareholders have had an even rougher run lately, with the share price down 32% in the last 90 days.

Check out our latest analysis for Chanhigh Holdings

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Unhappily, Chanhigh Holdings had to report a 43% decline in EPS over the last year. This reduction in EPS is not as bad as the 76% share price fall. So it seems the market was too confident about the business, a year ago. The P/E ratio of 7.08 also points to the negative market sentiment.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

This free interactive report on Chanhigh Holdings's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Chanhigh Holdings shareholders are down 76% for the year, even worse than the market loss of 8.5%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 32% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Chanhigh Holdings better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 6 warning signs for Chanhigh Holdings (of which 3 shouldn't be ignored!) you should know about.

Of course Chanhigh Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.