Yahoo Finance The OpenLimit Holding (ETR:O5H) Share Price Is Down 84% So Some Shareholders Are Rather Upset
Some stocks are best avoided. We really hate to see fellow investors lose their hard-earned money. Imagine if you held OpenLimit Holding AG (ETR:O5H) for half a decade as the share price tanked 84%. And we doubt long term believers are the only worried holders, since the stock price has declined 67% over the last twelve months. The falls have accelerated recently, with the share price down 61% in the last three months. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.
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.
See our latest analysis for OpenLimit Holding
OpenLimit Holding isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
Over half a decade OpenLimit Holding reduced its trailing twelve month revenue by 7.6% for each year. That's not what investors generally want to see. The share price fall of 31% (per year, over five years) is a stern reminder that money-losing companies are expected to grow revenue. We're generally averse to companies with declining revenues, but we're not alone in that. That is not really what the successful investors we know aim for.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at OpenLimit Holding's financial health with this free report on its balance sheet.
A Different Perspective
While the broader market lost about 8.2% in the twelve months, OpenLimit Holding shareholders did even worse, losing 67%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 31% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that OpenLimit Holding is showing 5 warning signs in our investment analysis , and 2 of those shouldn't be ignored...
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on DE 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.
