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We're definitely into long term investing, but some companies are simply bad investments over any time frame. We don't wish catastrophic capital loss on anyone. Anyone who held Ankit Metal & Power Limited (NSE:ANKITMETAL) for five years would be nursing their metaphorical wounds since the share price dropped 96% in that time. And we doubt long term believers are the only worried holders, since the stock price has declined 59% over the last twelve months.

We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.

Check out our latest analysis for Ankit Metal & Power

Because Ankit Metal & Power is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last five years Ankit Metal & Power saw its revenue shrink by 45% per year. That puts it in an unattractive cohort, to put it mildly. So it's not altogether surprising to see the share price down 47% per year in the same time period. We don't think this is a particularly promising picture. Ironically, that behavior could create an opportunity for the contrarian investor - but only if there are good reasons to predict a brighter future.

Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.

Take a more thorough look at Ankit Metal & Power's financial health with this free report on its balance sheet.

A Different Perspective

Ankit Metal & Power shareholders are down 59% for the year, but the market itself is up 2.9%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 47% over the last half decade. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.