Some Inno-Tech Holdings (HKG:8202) Shareholders Have Copped A 96% Share Price Wipe Out

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Every investor on earth sometimes makes bad calls. But really large losses can really weigh on an overall portfolio, so take a moment to sympathize with long-term shareholders of Inno-Tech Holdings Limited (HKG: 8202) who have seen the stock price tank a massive 96% over a three year period. This could raise serious doubts about the merits of the original decision to buy the stock, to put it mildly. And last year the share price fell 40%, so we doubt that many shareholders are excited. "Data-reactid =" 28 "> Every investor on Earth sometimes makes bad calls, but really big losses can really strain an entire portfolio, so take a moment to sympathize with long-term shareholders of Inno-Tech Holdings Limited (HKG: 8202) who have seen the stock price tank a massive 96% over a three year period. This could raise serious doubts about the merits of the original decision to buy the stock, to put it mildly. And last year the share price fell 40%, so we doubt that many shareholders are excited.

We really feel for the shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth considering that life is more than money anyway.

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Check out our latest analysis for Inno-Tech Holdings "data-reactid =" 30 "> Check out our latest analysis for Inno-Tech Holdings

Since Inno-Tech Holdings has not made a profit in the past twelve months, we focus on sales growth to get a quick overview of business development. When a company is not making a profit, we generally expect good sales growth. As you can imagine, rapid growth in sales while maintaining often leads to rapid profit growth.

Over the past three years, Inno-Tech Holdings has increased its sales by 24% a year. That is faster than most pre-profit companies. Why did the share price drop 66% a year at the same time? You should take a closer look at the balance sheet and the losses. Ultimately, sales growth doesn't matter much if the business doesn't scale well. If the company has little cash, it may need to raise capital soon.

The image below shows how earnings and earnings have changed over time (click on the graph to see the exact values).

SEHK: 8202 Income Statement May 22, 2020

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "We are pleased to inform you that the CEO this is more modest than most CEOs at similarly capitalized companies. Although CEO compensation is always worth checking, the really important question is whether the company can increase its profits in the future. It might be worth a look at ours throw free Inno-Tech Holdings earnings, revenue, and cash flow report. "data-reactid =" 46 "> We are happy to announce that the CEO of similarly capitalized companies is paid more modestly than most CEOs. While the CEO's compensation is always worth checking, the really important question is whether the company can grow profits for the future. It might be worth taking a look at ours free Inno-Tech Holdings earnings, revenue, and cash flow report.

Another perspective

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The shareholders of Inno-Tech Holdings decreased by 40% The market lost around 3.8%, which no doubt weighed on the share price, but last year's loss is not as bad as the 66% loss per year that investors have suffered over the year. We need clear signs of growth in the underlying business before we have a lot of enthusiasm for it. It’s always interesting to watch the price development in the longer term, but to understand Inno-Tech Holdings better we need to consider many other factors. Go for example Risks – Inno-Tech Holdings has 3 warning signs We believe that you should be aware of this. "data-reactid =" 48 "> Inno-Tech Holdings' shareholders fell 40% during the year and failed to match the market return. The market lost around 3.8%, which no doubt weighed on the stock. The loss last year is but not as bad as the 66% loss per year that investors have suffered in the past three years. We need clear signs of underlying business growth before we can get a lot of enthusiasm for it To understand Inno-Tech Holdings better, there are many other factors we need to consider, such as taking risks – Inno-Tech Holdings does 3 warning signs We think you should be aware of this.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If you would rather check out another company – – one with potentially superior finances – then don't miss this free List of companies that have proven that they can increase their profits."data-reactid =" 49 "> If you'd rather try another company with potentially superior financial data, don't miss this free List of companies that have proven that they can increase their profits.

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Please note that the market returns listed in this article reflect the market-weighted average returns on stocks currently traded on HK exchanges."data-reactid =" 50 ">Please note that the market returns listed in this article reflect the market-weighted average returns on stocks currently traded on HK exchanges.

<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Do you love or hate this article? Concerned about the content? Get in touch directly with us. Alternatively, you can also send an email editorial-team@simplywallst.com.

This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We would like to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned. Thank you for reading."data-reactid =" 51 ">Do you love or hate this article? Concerned about the content? Get in touch directly with us. Alternatively, send an email to editorial-team@simplywallst.com.

This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We would like to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned. Thank you for reading.



Source link

Be the first to comment

Leave a Reply

Your email address will not be published.


*