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The HTC Purenergy (CVE:HTC) Share Price Has Gained 285%, So Why Not Pay It Some Attention?

The last three months have been tough on HTC Purenergy Inc. (CVE:HTC) shareholders, who have seen the share price decline a rather worrying 52%. But that doesn't detract from the splendid returns of the last year. Like an eagle, the share price soared 285% in that time. So it may be that the share price is simply cooling off after a strong rise. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.

View our latest analysis for HTC Purenergy

Because HTC Purenergy 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. 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 HTC Purenergy saw its revenue grow by 290%. That's well above most other pre-profit companies. And the share price has responded, gaining 285% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

TSXV:HTC Income Statement, October 3rd 2019
TSXV:HTC Income Statement, October 3rd 2019

If you are thinking of buying or selling HTC Purenergy stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that HTC Purenergy shareholders have received a total shareholder return of 285% over the last year. That's better than the annualised return of 2.8% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. You could get a better understanding of HTC Purenergy's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

We will like HTC Purenergy better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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.