Did Changing Sentiment Drive Pavillon Holdings's (SGX:596) Share Price Down A Painful 88%?
Some stocks are best avoided. We don't wish catastrophic capital loss on anyone. Imagine if you held Pavillon Holdings Ltd. (SGX:596) for half a decade as the share price tanked 88%. And it's not just long term holders hurting, because the stock is down 33% in the last year.
We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.
Check out our latest analysis for Pavillon Holdings
Given that Pavillon Holdings 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. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
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 Pavillon Holdings's financial health with this free report on its balance sheet.
A Different Perspective
While the broader market gained around 4.4% in the last year, Pavillon Holdings shareholders lost 33%. 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. Unfortunately, longer term shareholders are suffering worse, given the loss of 35% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. If you would like to research Pavillon Holdings in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
But note: Pavillon Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG 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.
