Yahoo Finance Investors Who Bought Berkeley Energia (ASX:BKY) Shares A Year Ago Are Now Down 63%
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Even the best stock pickers will make plenty of bad investments. Anyone who held Berkeley Energia Limited (ASX:BKY) over the last year knows what a loser feels like. The share price is down a hefty 63% in that time. We note that it has not been easy for shareholders over three years, either; the share price is down 46% in that time. Furthermore, it's down 39% in about a quarter. That's not much fun for holders.
See our latest analysis for Berkeley Energia
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During the last year Berkeley Energia grew its earnings per share, moving from a loss to a profit. The result looks like a strong improvement to us, so we're surprised the market has sold down the shares. If the company can sustain the earnings growth, this might be an inflection point for the business, which would make right now a really interesting time to study it more closely.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We know that Berkeley Energia has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Berkeley Energia's financial health with this free report on its balance sheet.
A Different Perspective
While the broader market gained around 9.8% in the last year, Berkeley Energia shareholders lost 63%. 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. On the bright side, long term shareholders have made money, with a gain of 2.4% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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.
Of course Berkeley Energia may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU 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.
