Yahoo Finance Investors one-year losses grow to 30% as the stock sheds CA$18m this past week
Mene Inc. (CVE:MENE) shareholders should be happy to see the share price up 14% in the last month. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 30% in the last year, well below the market return.
With the stock having lost 11% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.
View our latest analysis for Mene
Because Mene made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Mene grew its revenue by 16% over the last year. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 30%. You might even wonder if the share price was previously over-hyped. But if revenue keeps growing, then at a certain point the share price would likely follow.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Take a more thorough look at Mene's financial health with this free report on its balance sheet.
A Different Perspective
The last twelve months weren't great for Mene shares, which performed worse than the market, costing holders 30%. The market shed around 0.1%, no doubt weighing on the stock price. Shareholders have lost 1.1% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. If you would like to research Mene in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
But note: Mene may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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