If you love investing in stocks you're bound to buy some losers. But long term Tian Ge Interactive Holdings Limited (HKG:1980) shareholders have had a particularly rough ride in the last three year. Sadly for them, the share price is down 61% in that time. The more recent news is of little comfort, with the share price down 44% in a year. The good news is that the stock is up 4.0% in the last week.

See our latest analysis for Tian Ge Interactive Holdings

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Over the three years that the share price declined, Tian Ge Interactive Holdings's earnings per share (EPS) dropped significantly, falling to a loss. Extraordinary items contributed to this situation. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. However, we can say we'd expect to see a falling share price in this scenario.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

It's probably worth noting that the CEO is paid less than the median at similar sized 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. Dive deeper into the earnings by checking this interactive graph of Tian Ge Interactive Holdings's earnings, revenue and cash flow.

A Different Perspective

While the broader market lost about 1.2% in the twelve months, Tian Ge Interactive Holdings shareholders did even worse, losing 44%. 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 11% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality business. You could get a better understanding of Tian Ge Interactive Holdings's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

We will like Tian Ge Interactive Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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