Yahoo Finance Introducing Petro-Victory Energy (CVE:VRY), The Stock That Zoomed 300% In The Last Three Years
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For instance the Petro-Victory Energy Corp. (CVE:VRY) share price is 300% higher than it was three years ago. How nice for those who held the stock!
Check out our latest analysis for Petro-Victory Energy
With zero revenue generated over twelve months, we don't think that Petro-Victory Energy has proved its business plan yet. 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. It seems likely some shareholders believe that Petro-Victory Energy will discover or develop fossil fuel before too long.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets. So the share price itself impacts the value of the shares (as it determines the cost of capital). 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. Petro-Victory Energy has already given some investors a taste of the sweet gains that high risk investing can generate, if your timing is right.
Petro-Victory Energy had liabilities exceeding cash by US$3,732,748 when it last reported in March 2019, according to our data. That makes it extremely high risk, in our view. So we're surprised to see the stock up 59% per year, over 3 years, but we're happy for holders. It's clear more than a few people believe in the potential. You can click on the image below to see (in greater detail) how Petro-Victory Energy's cash levels have changed over time. You can see in the image below, how Petro-Victory Energy's cash levels have changed over time (click to see the values).
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 often positive if so, assuming the buying is sustained and meaningful. Luckily we are in a position to provide you with this free chart of insider buying (and selling).
A Different Perspective
We're pleased to report that Petro-Victory Energy shareholders have received a total shareholder return of 33% over one year. There's no doubt those recent returns are much better than the TSR loss of 42% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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.
