December 1, 2021

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Those Who Purchased Drilling Company of 1972 (CPH:DRLCO) Shares A Year Ago Have A 70% Loss To Show For It

It’s not a secret that every investor will make bad investments, from time to time. But it’s not unreasonable to try to avoid truly shocking capital losses. It must have been painful to be a The Drilling Company of 1972 A/S (CPH:DRLCO) shareholder over the last year, since the stock price plummeted 70% in that time. That’d be enough to make even the strongest stomachs churn. Because Drilling Company of 1972 hasn’t been listed for many years, the market is still learning about how the business performs. Furthermore, it’s down 61% in about a quarter. That’s not much fun for holders.

View our latest analysis for Drilling Company of 1972

Given that Drilling Company of 1972 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. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Drilling Company of 1972’s revenue didn’t grow at all in the last year. In fact, it fell 14%. That looks pretty grim, at a glance. The market obviously agrees, since the share price tanked 70%. That’s a stern reminder that profitless companies need to grow the top line, at the very least. But markets do over-react, so there opportunity for investors who are willing to take the time to dig deeper and understand the business.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

CPSE:DRLCO Income Statement May 18th 2020

Drilling Company of 1972 is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Drilling Company of 1972 stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

While Drilling Company of 1972 shareholders are down 70% for the year, the market itself is up 18%. While the aim is to do better than that, it’s worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 61% 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. It’s always interesting to track share price performance over the longer term. But to understand Drilling Company of 1972 better, we need to consider many other factors. For example, we’ve discovered 1 warning sign for Drilling Company of 1972 that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on DK exchanges.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.

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