Yahoo Finance Did You Manage To Avoid Bragg Gaming Group's (CVE:BRAG) Devastating 72% Share Price Drop?
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 spare a thought for the long term shareholders of Bragg Gaming Group Inc. (CVE:BRAG); the share price is down a whopping 72% in the last twelve months. That'd be a striking reminder about the importance of diversification. We wouldn't rush to judgement on Bragg Gaming Group because we don't have a long term history to look at. More recently, the share price has dropped a further 10% in a month. However, we note the price may have been impacted by the broader market, which is down 4.2% in the same time period.
Check out our latest analysis for Bragg Gaming Group
Bragg Gaming Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
In the last year Bragg Gaming Group saw its revenue grow by 225%. That's a strong result which is better than most other loss making companies. So on the face of it we're really surprised to see the share price down 72% over twelve months. There's clearly something unusual going on here such as an acquisition that hasn't delivered expected profits. We'd recommend taking a very close look at the stock (and any available forecasts), before considering a purchase, because the share price is not correlated with the revenue growth, that's for sure. Of course, markets do over-react so share price drop may be too harsh.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
While Bragg Gaming Group shareholders are down 72% for the year, the market itself is up 1.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Putting aside the last twelve months, it's good to see the share price has rebounded by 7.5%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Bragg Gaming Group better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Bragg Gaming Group you should be aware of, and 2 of them are a bit unpleasant.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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.
