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It might be of some concern to shareholders to see the Checkpoint Therapeutics, Inc. (NASDAQ:CKPT) share price down 14% in the last month. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 84% in that time.
Checkpoint Therapeutics recorded just US$1,067,000 in revenue over the last twelve months, which isn't really enough for us to consider it to have a proven product. So it seems that the investors focused more on what could be, than paying attention to the current revenues (or lack thereof). For example, they may be hoping that Checkpoint Therapeutics comes up with a great new product, before it runs out of money.
Companies that lack both meaningful revenue and profits are usually considered high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt. Of course, if you time it right, high risk investments like this can really pay off, as Checkpoint Therapeutics investors might know.
When it last reported its balance sheet in September 2020, Checkpoint Therapeutics had cash in excess of all liabilities of US$36m. That's not too bad but management may have to think about raising capital or taking on debt, unless the company is close to breaking even. With the share price up 107% in the last year , the market is seems hopeful about the potential, despite the cash burn. The image below shows how Checkpoint Therapeutics' balance sheet has changed over time; if you want to see the precise values, simply click on the image.
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. However you can take a look at whether insiders have been buying up shares. If they are buying a significant amount of shares, that's certainly a good thing. 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 Checkpoint Therapeutics shareholders have gained 84% (in total) over the last year. That certainly beats the loss of about 11% per year over three years. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. It's always interesting to track share price performance over the longer term. But to understand Checkpoint Therapeutics better, we need to consider many other factors. For example, we've discovered 5 warning signs for Checkpoint Therapeutics that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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.
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