BioSig Technologies (NASDAQ:BSGM) Shareholders Have Enjoyed An Impressive 148% Share Price Gain
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It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But if you buy shares in a really great company, you can more than double your money. To wit, the BioSig Technologies, Inc. (NASDAQ:BSGM) share price has flown 148% in the last three years. Most would be happy with that. In more good news, the share price has risen -2.9% in thirty days.
See our latest analysis for BioSig Technologies
With zero revenue generated over twelve months, we don't think that BioSig Technologies has proved its business plan yet. So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). Investors will be hoping that BioSig Technologies can make progress and gain better traction for the business, before it runs low on cash.
Companies that lack both meaningful revenue and profits are usually considered 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. Some BioSig Technologies investors have already had a taste of the sweet taste stocks like this can leave in the mouth, as they gain popularity and attract speculative capital.
When it reported in March 2019 BioSig Technologies had minimal cash in excess of all liabilities consider its expenditure: just US$9.7m to be specific. So if it has not already moved to replenish reserves, we think the near-term chances of a capital raising event are pretty high. Given how low on cash the it got, investors must really like its potential for the share price to be up 35% per year, over 3 years. You can click on the image below to see (in greater detail) how BioSig Technologies's cash levels have changed over time. The image below shows how BioSig Technologies's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
Of course, the truth is that it is hard to value companies without much revenue or profit. Given that situation, many of the best investors like to check if insiders have been buying shares. It's usually a positive if they have, as it may indicate they see value in the stock. Luckily we are in a position to provide you with this free chart of insider buying (and selling).
A Different Perspective
It's nice to see that BioSig Technologies shareholders have gained 60% (in total) over the last year. That's better than the annualized TSR of 35% over the last three years. The improving returns to shareholders suggests the stock is becoming more popular with time. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of BioSig Technologies by clicking this link.
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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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.
