Yahoo Finance Condor Energies (TSE:CDR) spikes 25% this week, taking five-year gains to 432%
We think all investors should try to buy and hold high quality multi-year winners. While not every stock performs well, when investors win, they can win big. Just think about the savvy investors who held Condor Energies Inc. (TSE:CDR) shares for the last five years, while they gained 432%. This just goes to show the value creation that some businesses can achieve. Better yet, the share price has risen 25% in the last week.
The past week has proven to be lucrative for Condor Energies investors, so let's see if fundamentals drove the company's five-year performance.
Check out our latest analysis for Condor Energies
We don't think Condor Energies' revenue of CA$2,730,000 is enough to establish significant demand. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. It seems likely some shareholders believe that Condor Energies will discover or develop fossil fuel before too long.
Companies that lack both meaningful revenue and profits are usually considered high risk. You should be aware that the company needed to issue more shares recently so that it could raise enough money to continue pursuing its business plan. While some such companies do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized). Of course, if you time it right, high risk investments like this can really pay off, as Condor Energies investors might know.
Condor Energies had liabilities exceeding cash when it last reported, according to our data. That put it in the highest risk category, according to our analysis. So we're not surprised to see the stock up 47% per year, over 5 years , once the company took on some more capital. Investors must really like its potential. You can see in the image below, how Condor Energies' cash levels have changed over time (click to see the values).
Of course, the truth is that it is hard to value companies without much revenue or profit. Given that situation, many of the best investors like to check if insiders have been buying shares. It's usually a positive if they have, as it may indicate they see value in the stock. You can click here to see if there are insiders buying.
A Different Perspective
It's good to see that Condor Energies has rewarded shareholders with a total shareholder return of 242% in the last twelve months. That's better than the annualised return of 40% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 4 warning signs for Condor Energies you should be aware of.
Condor Energies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
