Yahoo Finance The Blackwell Global Holdings (NZSE:BGI) Share Price Is Down 14% So Some Shareholders Are Getting Worried
It is a pleasure to report that the Blackwell Global Holdings Limited (NZSE:BGI) is up 50% in the last quarter. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact the stock is down 14% in the last year, well below the market return.
View our latest analysis for Blackwell Global Holdings
Blackwell Global Holdings recorded just NZ$446,257 in revenue over the last twelve months, which isn't really enough for us to consider it to have a proven product. We can't help wondering why it's publicly listed so early in its journey. Are venture capitalists not interested? As a result, we think it's unlikely shareholders are paying much attention to current revenue, but rather speculating on growth in the years to come. It seems likely some shareholders believe that Blackwell Global Holdings will significantly advance the business plan before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing.
Blackwell Global Holdings had liabilities exceeding cash by NZ$1.5m when it last reported in September 2019, according to our data. That makes it extremely high risk, in our view. But with the share price diving 14% in the last year , it's probably fair to say that some shareholders no longer believe the company will succeed. The image below shows how Blackwell Global Holdings's balance sheet has changed over time; if you want to see the precise values, simply click on the image. The image below shows how Blackwell Global Holdings's balance sheet has changed over time; if you want to see the precise values, simply click on the image.
Of course, the truth is that it is hard to value companies without much revenue or profit. What if insiders are ditching the stock hand over fist? It would bother me, that's for sure. It only takes a moment for you to check whether we have identified any insider sales recently.
A Different Perspective
Given that the market gained 28% in the last year, Blackwell Global Holdings shareholders might be miffed that they lost 14%. 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. It's great to see a nice little 50% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
But note: Blackwell Global Holdings 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 NZ 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.
