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We think intelligent long term investing is the way to go. But that doesn't mean long term investors can avoid big losses. To wit, the Superactive Group Company Limited (HKG:176) share price managed to fall 67% over five long years. That's not a lot of fun for true believers. And we doubt long term believers are the only worried holders, since the stock price has declined 34% over the last twelve months. Furthermore, it's down 20% in about a quarter. That's not much fun for holders.
See our latest analysis for Superactive Group
Superactive Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last half decade, Superactive Group saw its revenue increase by 6.1% per year. That's a pretty good rate for a long time period. The share price, meanwhile, has fallen 20% compounded, over five years. That suggests the market is disappointed with the current growth rate. A pessimistic market can create opportunities.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
While the broader market lost about 11% in the twelve months, Superactive Group shareholders did even worse, losing 34%. 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. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 20% per year over five years. 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 Superactive Group better, we need to consider many other factors. For instance, we've identified 6 warning signs for Superactive Group (2 are a bit unpleasant) that you should be aware of.
We will like Superactive Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.