Yahoo Finance Introducing Athabasca Minerals (CVE:ABM), The Stock That Zoomed 245% In The Last Three Years
It's been a soft week for Athabasca Minerals Inc. (CVE:ABM) shares, which are down 15%. But that doesn't change the fact that the returns over the last three years have been very strong. In three years the stock price has launched 245% higher: a great result. So the recent fall in the share price should be viewed in that context. The fundamental business performance will ultimately dictate whether the top is in, or if this is a stellar buying opportunity.
See our latest analysis for Athabasca Minerals
Because Athabasca Minerals is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 3 years Athabasca Minerals saw its revenue shrink by 32% per year. So the share price gain of 51% per year is quite surprising. It's a good reminder that expectations about the future, not the past history, always impact share prices.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. This free report showing analyst forecasts should help you form a view on Athabasca Minerals
A Different Perspective
We're pleased to report that Athabasca Minerals shareholders have received a total shareholder return of 68% over one year. There's no doubt those recent returns are much better than the TSR loss of 16% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Athabasca Minerals by clicking this link.
Athabasca Minerals is not the only stock insiders are buying. So take a peek at this free list of growing companies with 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.
