Yahoo Finance If You Had Bought Altus Strategies (LON:ALS) Stock A Year Ago, You Could Pocket A 118% Gain Today
Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Altus Strategies plc (LON:ALS) share price has soared 118% in the last year. Most would be very happy with that, especially in just one year! On top of that, the share price is up 69% in about a quarter. We'll need to follow Altus Strategies for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
View our latest analysis for Altus Strategies
With just UK£72,418 worth of revenue in twelve months, we don't think the market considers Altus Strategies 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. For example, investors may be hoping that Altus Strategies finds some valuable resources, before it runs out of money.
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 such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Altus Strategies has already given some investors a taste of the sweet gains that high risk investing can generate, if your timing is right.
Our data indicates that Altus Strategies had UK£699k more in total liabilities than it had cash, when it last reported in September 2019. That puts it in the highest risk category, according to our analysis. So the fact that the stock is up 94% in the last year shows that high risks can lead to high rewards, sometimes. Investors must really like its potential. You can click on the image below to see (in greater detail) how Altus Strategies's cash levels have changed over time. You can see in the image below, how Altus Strategies's cash levels have changed over time (click to see the values).
In reality it's hard to have much certainty when valuing a business that has neither revenue or profit. 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. Luckily we are in a position to provide you with this free chart of insider buying (and selling).
A Different Perspective
Altus Strategies boasts a total shareholder return of 118% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 69% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 7 warning signs for Altus Strategies you should be aware of, and 3 of them are significant.
Altus Strategies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB 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.
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. Thank you for reading.
