In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Corline Biomedical AB (STO:CLBIO) shareholders might be concerned after seeing the share price drop 13% in the last quarter. But that doesn't change the fact that the returns over the last three years have been very strong. In three years the stock price has launched 107% higher: a great result. So the recent fall in the share price should be viewed in that context. If the business can perform well for years to come, then the recent drop could be an opportunity.
See our latest analysis for Corline Biomedical
With just kr9,527,000 worth of revenue in twelve months, we don't think the market considers Corline Biomedical to have proven its business plan. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. Investors will be hoping that Corline Biomedical can make progress and gain better traction for the business, before it runs low on cash.
Companies that lack both meaningful revenue and profits are usually considered high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. 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. Some Corline Biomedical investors have already had a taste of the sweet taste stocks like this can leave in the mouth, as they gain popularity and attract speculative capital.
Corline Biomedical has plenty of cash in the bank, with cash in excess of all liabilities sitting at kr20m, when it last reported (December 2018). This gives management the flexibility to drive business growth, without worrying too much about cash reserves. And given that the share price has shot up 27% per year, over 3 years, its fair to say investors are liking management's vision for the future. You can see in the image below, how Corline Biomedical's cash levels have changed over time (click to see the values).
Of course, the truth is that it is hard to value companies without much revenue or profit. One thing you can do is check if company insiders are buying shares. If they are buying a significant amount of shares, that's certainly a good thing. Luckily we are in a position to provide you with this free chart of insider buying (and selling).
A Different Perspective
We're pleased to report that Corline Biomedical rewarded shareholders with a total shareholder return of 12% over the last year. The TSR has been even better over three years, coming in at 27% per year. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.