CLICK TO SHARE
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that GYG plc (LON:GYG) stock has had a really bad year. The share price has slid 52% in that time. GYG may have better days ahead, of course; we've only looked at a one year period. Unfortunately the share price momentum is still quite negative, with prices down 22% in thirty days.
Because GYG is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In just one year GYG saw its revenue fall by 28%. That's not what investors generally want to see. In the absence of profits, it's not unreasonable that the share price fell 52%. Fingers crossed this is the low ebb for the stock. We don't generally like to own companies with falling revenues and no profits, so we're pretty cautious of this one, at the moment.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
Post a comment.
CLICK TO SHARE