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Easy Come, Easy Go: How Biom'Up (EPA:BUP) Shareholders Got Unlucky And Saw 88% Of Their Cash Evaporate

Even the best investor on earth makes unsuccessful investments. But it should be a priority to avoid stomach churning catastrophes, wherever possible. So spare a thought for the long term shareholders of Biom'Up S.A. (EPA:BUP); the share price is down a whopping 88% in the last twelve months. That'd be a striking reminder about the importance of diversification. Because Biom'Up hasn't been listed for many years, the market is still learning about how the business performs. Furthermore, it's down 45% in about a quarter. That's not much fun for holders.

We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.

Check out our latest analysis for Biom'Up

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Given that Biom'Up 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In just one year Biom'Up saw its revenue fall by 33%. That looks pretty grim, at a glance. The market obviously agrees, since the share price tanked 88%. Holders should not lose the lesson: loss making companies should grow revenue. Of course, extreme share price falls can be an opportunity for those who are willing to really dig deeper to understand a high risk company like this.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

ENXTPA:BUP Income Statement, September 17th 2019
ENXTPA:BUP Income Statement, September 17th 2019

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

While Biom'Up shareholders are down 88% for the year, the market itself is up 6.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 45% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

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 FR 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.