Yahoo Finance Some United Hunter Oil & Gas (CVE:UHO) Shareholders Have Copped A Big 64% Share Price Drop
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United Hunter Oil & Gas Corp. (CVE:UHO) shareholders will doubtless be very grateful to see the share price up 33% in the last week. But that isn't much consolation to those who have suffered through the declines of the last year. Like an arid lake in a warming world, shareholder value has evaporated, with the share price down 64% in that time. It's not that amazing to see a bounce after a drop like that. It may be that the fall was an overreaction.
View our latest analysis for United Hunter Oil & Gas
United Hunter Oil & Gas didn't have any revenue in the last year, so it's fair to say it doesn't yet have a proven product (or at least not one people are paying for). You have to wonder why venture capitalists aren't funding it. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that United Hunter Oil & Gas will discover or develop fossil fuel before too long.
We think companies that have neither significant revenues nor profits are pretty high risk. 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. United Hunter Oil & Gas has already given some investors a taste of the bitter losses that high risk investing can cause.
United Hunter Oil & Gas had liabilities exceeding cash by CA$120,779 when it last reported in March 2019, according to our data. That puts it in the highest risk category, according to our analysis. But with the share price diving 64% in the last year, it's probably fair to say that some shareholders no longer believe the company will succeed. You can see in the image below, how United Hunter Oil & Gas's cash levels have changed over time (click to see the values). You can click on the image below to see (in greater detail) how United Hunter Oil & Gas's cash levels have changed over time.
Of course, the truth is that it is hard to value companies without much revenue or profit. Would it bother you if insiders were selling the stock? It would bother me, that's for sure. It costs nothing but a moment of your time to see if we are picking up on any insider selling.
A Different Perspective
United Hunter Oil & Gas shareholders are down 64% for the year, but the market itself is up 1.1%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 0.8% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
We will like United Hunter Oil & Gas 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.
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