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If you want to compound wealth in the stock market, you can do so by buying an index fund. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Public Joint-Stock Company Mediaholding (MCX:ODVA) share price is 26% higher than it was a year ago, much better than the market return of around 19% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! Unfortunately the longer term returns are not so good, with the stock falling 23% in the last three years.
Check out our latest analysis for Mediaholding
With just RUруб8,517,000 worth of revenue in twelve months, we don't think the market considers Mediaholding to have proven its business plan. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. Investors will be hoping that Mediaholding 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. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt.
Mediaholding had liabilities exceeding cash by RUруб344,828,000 when it last reported in December 2018, according to our data. That puts it in the highest risk category, according to our analysis. So we're surprised to see the stock up 26% in the last year, but we're happy for holders. Investors must really like its potential. You can see in the image below, how Mediaholding's cash levels have changed over time (click to see the values). You can see in the image below, how Mediaholding's cash levels have changed over time (click to see the values).
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. However you can take a look at whether insiders have been buying up shares. If they are buying a significant amount of shares, that's certainly a good thing. You can click here to see if there are insiders buying.
A Different Perspective
Mediaholding's TSR for the year was broadly in line with the market average, at 26%. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 2.1% over the last five years. We're pretty skeptical of turnaround stories, but it's good to see the recent share price recovery. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.