Yahoo Finance Some Albert Technologies (LON:ALB) Shareholders Have Copped A Big 56% Share Price Drop
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Even the best stock pickers will make plenty of bad investments. Anyone who held Albert Technologies Ltd. (LON:ALB) over the last year knows what a loser feels like. In that relatively short period, the share price has plunged 56%. Longer term investors have fared much better, since the share price is up 9.4% in three years. The falls have accelerated recently, with the share price down 35% in the last three months.
View our latest analysis for Albert Technologies
Albert Technologies isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last twelve months, Albert Technologies increased its revenue by 166%. That's well above most other pre-profit companies. In contrast the share price is down 56% over twelve months. Yes, the market can be a fickle mistress. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
This free interactive report on Albert Technologies's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Albert Technologies shareholders are down 56% for the year, but the broader market is up 2.3%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Investors are up over three years, booking 3.0% per year, much better than the more recent returns. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. If you would like to research Albert Technologies in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.
