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Even the best investor on earth makes unsuccessful investments. But it would be foolish to simply accept every extremely large loss as an inevitable part of the game. So spare a thought for the long term shareholders of B & S International Holdings Ltd. (HKG:1705); the share price is down a whopping 73% in the last twelve months. That’d be enough to make even the strongest stomachs churn. B & S International Holdings hasn’t been listed for long, so although we’re wary of recent listings that perform poorly, it may still prove itself with time. The good news is that the stock is up 7.1% in the last week.
See our latest analysis for B & S International Holdings
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Unfortunately B & S International Holdings reported an EPS drop of 23% for the last year. The share price decline of 73% is actually more than the EPS drop. So it seems the market was too confident about the business, a year ago.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We’re pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized 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. This free interactive report on B & S International Holdings’s earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
A Different Perspective
We doubt B & S International Holdings shareholders are happy with the loss of 72% over twelve months (even including dividends). That falls short of the market, which lost 8.5%. That’s disappointing, but it’s worth keeping in mind that the market-wide selling wouldn’t have helped. Putting aside the last twelve months, it’s good to see the share price has rebounded by 10%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it’s the start of a new trend. Before forming an opinion on B & S International Holdings you might want to consider these 3 valuation metrics.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.