Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Asia Pacific Silk Road Investment Company Limited (HKG:767) share price has soared 208% return in just a single year. In more good news, the share price has risen -7.1% in thirty days. This could be related to the recent financial results that were recently released - you could check the most recent data by reading our company report. In contrast, the longer term returns are negative, since the share price is 73% lower than it was three years ago.
Asia Pacific Silk Road Investment wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. 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.
In the last year Asia Pacific Silk Road Investment saw its revenue shrink by 19%. So we would not have expected the share price to rise 208%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of Asia Pacific Silk Road Investment's earnings, revenue and cash flow.
A Different Perspective
We're pleased to report that Asia Pacific Silk Road Investment shareholders have received a total shareholder return of 208% over one year. That certainly beats the loss of about 27% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Asia Pacific Silk Road Investment better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Asia Pacific Silk Road Investment (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.
Asia Pacific Silk Road Investment is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.