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If You Had Bought Organic Garage (CVE:OG) Stock A Year Ago, You'd Be Sitting On A 79% Loss, Today

Even the best investor on earth makes unsuccessful investments. But it would be foolish to simply accept every extremely large loss as an inevitable part of the game. It must have been painful to be a Organic Garage Ltd. (CVE:OG) shareholder over the last year, since the stock price plummeted 79% in that time. A loss like this is a stark reminder that portfolio diversification is important. Organic Garage may have better days ahead, of course; we've only looked at a one year period. Shareholders have had an even rougher run lately, with the share price down 50% in the last 90 days. 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.

Check out our latest analysis for Organic Garage

Given that Organic Garage 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Organic Garage grew its revenue by 11% over the last year. While that may seem decent it isn't great considering the company is still making a loss. Nonetheless, it's fair to say the 79% share price implosion is unexpected.. We'd venture this growth was too low to give holders confidence that profitability is on the horizon. But if it will make money, albeit later than previously believed, this could be an opportunity.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

TSXV:OG Income Statement, October 4th 2019
TSXV:OG Income Statement, October 4th 2019

This free interactive report on Organic Garage's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

While Organic Garage shareholders are down 79% for the year, the market itself is up 1.2%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 50%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

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 CA 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.

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