Investors can approximate the average market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. That downside risk was realized by Amasse Capital Holdings Limited (HKG:8168) shareholders over the last year, as the share price declined 31%. That's well bellow the market return of -5.0%. Amasse Capital Holdings may have better days ahead, of course; we've only looked at a one year period. The falls have accelerated recently, with the share price down 22% in the last three months.
Amasse Capital Holdings isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In just one year Amasse Capital Holdings saw its revenue fall by 45%. That's not what investors generally want to see. The stock price has languished lately, falling 31% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are thinking of buying or selling Amasse Capital Holdings stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We doubt Amasse Capital Holdings shareholders are happy with the loss of 31% over twelve months. That falls short of the market, which lost 5.0%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 22% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
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If you spot an error that warrants correction, please contact the editor at email@example.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.