Yahoo Finance Loss-making DMG Blockchain Solutions (CVE:DMGI) sheds a further CA$12m, taking total shareholder losses to 76% over 1 year
Even the best investor on earth makes unsuccessful investments. But it would be foolish to simply accept every extremely large loss as an inevitable part of the game. So we hope that those who held DMG Blockchain Solutions Inc. (CVE:DMGI) during the last year don't lose the lesson, in addition to the 76% hit to the value of their shares. A loss like this is a stark reminder that portfolio diversification is important. DMG Blockchain Solutions hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. Shareholders have had an even rougher run lately, with the share price down 33% in the last 90 days.
Since DMG Blockchain Solutions has shed CA$12m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.
See our latest analysis for DMG Blockchain Solutions
DMG Blockchain Solutions isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year DMG Blockchain Solutions saw its revenue grow by 2.7%. That's not a very high growth rate considering it doesn't make profits. Even so you could argue that it's surprising that the share price has tanked 76%. We'd venture this growth was too low to give holders confidence that profitability is on the horizon. If and only if this company is still likely to succeed, just a little slower, this could be a good opportunity.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
If you are thinking of buying or selling DMG Blockchain Solutions stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
While DMG Blockchain Solutions shareholders are down 76% for the year, the market itself is up 17%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 33% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand DMG Blockchain Solutions better, we need to consider many other factors. For example, we've discovered 5 warning signs for DMG Blockchain Solutions (1 is concerning!) that you should be aware of before investing here.
We will like DMG Blockchain Solutions 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 CA exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
