Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We don't wish catastrophic capital loss on anyone. Anyone who held China ITS (Holdings) Co., Ltd. (HKG:1900) for five years would be nursing their metaphorical wounds since the share price dropped 82% in that time. We also note that the stock has performed poorly over the last year, with the share price down 30%. It's down 4.4% in the last seven days.

We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.

See our latest analysis for China ITS (Holdings)

Given that China ITS (Holdings) didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over half a decade China ITS (Holdings) reduced its trailing twelve month revenue by 22% for each year. That puts it in an unattractive cohort, to put it mildly. So it's not altogether surprising to see the share price down 29% per year in the same time period. We don't think this is a particularly promising picture. Of course, the poor performance could mean the market has been too severe selling down. That can happen.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

While the broader market lost about 14% in the twelve months, China ITS (Holdings) shareholders did even worse, losing 30%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 29% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand China ITS (Holdings) better, we need to consider many other factors. Even so, be aware that China ITS (Holdings) is showing 3 warning signs in our investment analysis , you should know about...