Yahoo Finance If You Had Bought Tenth Avenue Petroleum (CVE:TPC) Stock Three Years Ago, You Could Pocket A 114% Gain Today
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. For instance the Tenth Avenue Petroleum Corp. (CVE:TPC) share price is 114% higher than it was three years ago. That sort of return is as solid as granite. In the last week the share price is up 150%.
See our latest analysis for Tenth Avenue Petroleum
Tenth Avenue Petroleum recorded just CA$762,122 in revenue over the last twelve months, which isn't really enough for us to consider it to have a proven product. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. For example, they may be hoping that Tenth Avenue Petroleum finds fossil fuels with an exploration program, before it runs out of money.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Tenth Avenue Petroleum has already given some investors a taste of the sweet gains that high risk investing can generate, if your timing is right.
Tenth Avenue Petroleum had liabilities exceeding cash by CA$1,964,121 when it last reported in March 2019, according to our data. That puts it in the highest risk category, according to our analysis. So we're surprised to see the stock up 29% per year, over 3 years, but we're happy for holders. Investors must really like its potential. The image below shows how Tenth Avenue Petroleum's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
Of course, the truth is that it is hard to value companies without much revenue or profit. However you can take a look at whether insiders have been buying up shares. It's usually a positive if they have, as it may indicate they see value in the stock. Luckily we are in a position to provide you with this free chart of insider buying (and selling).
A Different Perspective
It's good to see that Tenth Avenue Petroleum has rewarded shareholders with a total shareholder return of 88% in the last twelve months. Notably the five-year annualised TSR loss of 24% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. You could get a better understanding of Tenth Avenue Petroleum's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Of course Tenth Avenue Petroleum may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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.
