While it may not be enough for some shareholders, we think it is good to see the Clear Blue Technologies International Inc. (CVE:CBLU) share price up 27% in a single quarter. But that’s small comfort given the dismal price performance over the last year. During that time the share price has sank like a stone, descending 53%. The share price recovery is not so impressive when you consider the fall. It may be that the fall was an overreaction.
See our latest analysis for Clear Blue Technologies International
Given that Clear Blue Technologies International 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. Shareholders of unprofitable companies usually expect strong revenue growth. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Clear Blue Technologies International’s revenue didn’t grow at all in the last year. In fact, it fell 39%. That’s not what investors generally want to see. In the absence of profits, it’s not unreasonable that the share price fell 53%. Having said that, if growth is coming in the future, the stock may have better days ahead. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.
The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
TSXV:CBLU Income Statement, March 21st 2020
Take a more thorough look at Clear Blue Technologies International’s financial health with this free report on its balance sheet.
A Different Perspective
We doubt Clear Blue Technologies International shareholders are happy with the loss of 53% over twelve months. That falls short of the market, which lost 28%. That’s disappointing, but it’s worth keeping in mind that the market-wide selling wouldn’t have helped. Putting aside the last twelve months, it’s good to see the share price has rebounded by 27%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it’s the start of a new trend. It’s always interesting to track share price performance over the longer term. But to understand Clear Blue Technologies International better, we need to consider many other factors. Even so, be aware that Clear Blue Technologies International is showing 7 warning signs in our investment analysis , and 4 of those are significant…
But note: Clear Blue Technologies International may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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.
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