Yahoo Finance The Martello Technologies Group (CVE:MTLO) Share Price Is Down 11% So Some Shareholders Are Getting Worried
Investors can approximate the average market return by buying an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Investors in Martello Technologies Group Inc. (CVE:MTLO) have tasted that bitter downside in the last year, as the share price dropped 11%. That contrasts poorly with the market return of 14%. Martello Technologies Group hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. It's down 15% in about a quarter.
See our latest analysis for Martello Technologies Group
Given that Martello Technologies Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Martello Technologies Group grew its revenue by 87% over the last year. That's a strong result which is better than most other loss making companies. Given the revenue growth, the share price drop of 11% seems quite harsh. Our sympathies to shareholders who are now underwater. Prima facie, revenue growth like that should be a good thing, so it's worth checking whether losses have stabilized. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling Martello Technologies Group stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
While Martello Technologies Group shareholders are down 11% for the year, the market itself is up 14%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Notably, the loss over the last year isn't as bad as the 15% drop in the last three months. This probably signals that the business has recently disappointed shareholders - it will take time to win them back. It's always interesting to track share price performance over the longer term. But to understand Martello Technologies Group better, we need to consider many other factors. Be aware that Martello Technologies Group is showing 3 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...
We will like Martello Technologies Group 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.
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.
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. Thank you for reading.
