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Those Who Purchased MPC Container Ships (OB:MPCC) Shares A Year Ago Have A 64% Loss To Show For It

This week we saw the MPC Container Ships ASA (OB:MPCC) share price climb by 19%. But that isn't much consolation to those who have suffered through the declines of the last year. Like an arid lake in a warming world, shareholder value has evaporated, with the share price down 64% in that time. The share price recovery is not so impressive when you consider the fall. Of course, it could be that the fall was overdone.

View our latest analysis for MPC Container Ships

MPC Container Ships isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last twelve months, MPC Container Ships increased its revenue by 0.7%. That's not a very high growth rate considering it doesn't make profits. It's likely this muted growth has contributed to the share price decline of 64% in the last year. Like many holders, we really want to see better revenue growth in companies that lose money. When a stock falls hard like this, it can signal an over-reaction. Our preference is to wait for a fundamental improvements before buying, but now could be a good time for some research.

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

OB:MPCC Income Statement March 31st 2020
OB:MPCC Income Statement March 31st 2020

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

A Different Perspective

MPC Container Ships shareholders are down 64% for the year, even worse than the market loss of 24%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 45%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand MPC Container Ships better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 4 warning signs for MPC Container Ships you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NO 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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