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Investors Who Bought NeuroScientific Biopharmaceuticals (ASX:NSB) Shares A Year Ago Are Now Up 44%

Simply Wall St

It hasn't been the best quarter for NeuroScientific Biopharmaceuticals Limited (ASX:NSB) shareholders, since the share price has fallen 29% in that time. But that doesn't change the reality that over twelve months the stock has done really well. In that time we've seen the stock easily surpass the market return, with a gain of 44%.

View our latest analysis for NeuroScientific Biopharmaceuticals

We don't think NeuroScientific Biopharmaceuticals's revenue of AU$33,849 is enough to establish significant demand. As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. For example, they may be hoping that NeuroScientific Biopharmaceuticals comes up with a great new product, before it runs out of money.

We think companies that have neither significant revenues nor profits are pretty high risk. There is almost always a chance they will need to raise more capital, and their progress - and share price - will dictate how dilutive that is to current holders. While some such companies go on to make revenue, profits, and generate value, others get hyped up by hopeful naifs before eventually going bankrupt.

When it last reported its balance sheet in June 2019, NeuroScientific Biopharmaceuticals could boast a strong position, with cash in excess of all liabilities of AU$4.5m. This gives management the flexibility to drive business growth, without worrying too much about cash reserves. And given that the share price has shot up 129% in the last year , its fair to say investors are liking management's vision for the future. You can click on the image below to see (in greater detail) how NeuroScientific Biopharmaceuticals's cash levels have changed over time. You can click on the image below to see (in greater detail) how NeuroScientific Biopharmaceuticals's cash levels have changed over time.

ASX:NSB Historical Debt, October 3rd 2019
ASX:NSB Historical Debt, October 3rd 2019

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 often positive if so, assuming the buying is sustained and meaningful. Luckily we are in a position to provide you with this free chart of insider buying (and selling).

A Different Perspective

NeuroScientific Biopharmaceuticals boasts a total shareholder return of 44% for the last year. Unfortunately the share price is down 29% over the last quarter. Shorter term share price moves often don't signify much about the business itself. Before spending more time on NeuroScientific Biopharmaceuticals it might be wise to click here to see if insiders have been buying or selling shares.

If you are like me, then you will 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 AU 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.