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Introducing Aqua Metals (NASDAQ:AQMS), The Stock That Collapsed 98%

It's not possible to invest over long periods without making some bad investments. But you want to avoid the really big losses like the plague. So spare a thought for the long term shareholders of Aqua Metals, Inc. (NASDAQ:AQMS); the share price is down a whopping 98% in the last three years. That'd be enough to cause even the strongest minds some disquiet. The more recent news is of little comfort, with the share price down 88% in a year. More recently, the share price has dropped a further 57% in a month. We do note, however, that the broader market is down 31% in that period, and this may have weighed on the share price.

We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.

View our latest analysis for Aqua Metals

Because Aqua Metals made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

NasdaqCM:AQMS Income Statement, March 23rd 2020
NasdaqCM:AQMS Income Statement, March 23rd 2020

If you are thinking of buying or selling Aqua Metals stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Aqua Metals shareholders are down 88% for the year, falling short of the market return. Meanwhile, the broader market slid about 17%, likely weighing on the stock. Shareholders have lost 73% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. It's always interesting to track share price performance over the longer term. But to understand Aqua Metals better, we need to consider many other factors. Case in point: We've spotted 5 warning signs for Aqua Metals you should be aware of, and 2 of them are potentially serious.

We will like Aqua Metals better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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.

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. Thank you for reading.

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