March 29, 2024

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Investors Who Bought Crowd Media Holdings (ASX:CM8) Shares Five Years Ago Are Now Down 91%

Long term investing is the way to go, but that doesn’t mean you should hold every stock forever. It hits us in the gut when we see fellow investors suffer a loss. Spare a thought for those who held Crowd Media Holdings Limited (ASX:CM8) for five whole years – as the share price tanked 91%. Unfortunately the share price momentum is still quite negative, with prices down 26% in thirty days. We do note, however, that the broader market is down 23% in that period, and this may have weighed on the share price.

While a drop like that is definitely a body blow, money isn’t as important as health and happiness.

View our latest analysis for Crowd Media Holdings

Given that Crowd Media Holdings 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. When a company doesn’t make profits, we’d generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

ASX:CM8 Income Statement, March 16th 2020

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

We’re pleased to report that Crowd Media Holdings shareholders have received a total shareholder return of 21% over one year. There’s no doubt those recent returns are much better than the TSR loss of 37% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It’s always interesting to track share price performance over the longer term. But to understand Crowd Media Holdings better, we need to consider many other factors. Like risks, for instance. Every company has them, and we’ve spotted 6 warning signs for Crowd Media Holdings (of which 3 don’t sit too well with us!) you should know about.

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 AU 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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