Yahoo Finance The Victoria Oil & Gas (LON:VOG) Share Price Is Down 86% So Some Shareholders Are Rather Upset
Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We really hate to see fellow investors lose their hard-earned money. Spare a thought for those who held Victoria Oil & Gas Plc (LON:VOG) for five whole years - as the share price tanked 86%. And it's not just long term holders hurting, because the stock is down 68% in the last year. The falls have accelerated recently, with the share price down 44% in the last three months.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
Check out our latest analysis for Victoria Oil & Gas
Victoria Oil & Gas 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over half a decade Victoria Oil & Gas reduced its trailing twelve month revenue by 9.5% for each year. That puts it in an unattractive cohort, to put it mildly. So it's not that strange that the share price dropped 32% per year in that period. We don't think this is a particularly promising picture. Of course, the poor performance could mean the market has been too severe selling down. That can happen.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Take a more thorough look at Victoria Oil & Gas's financial health with this free report on its balance sheet.
A Different Perspective
Investors in Victoria Oil & Gas had a tough year, with a total loss of 68%, against a market gain of about 8.8%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 32% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. You could get a better understanding of Victoria Oil & Gas's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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.
