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It's not a secret that every investor will make bad investments, from time to time. But it should be a priority to avoid stomach churning catastrophes, wherever possible. So spare a thought for the long term shareholders of Tangiamo Touch Technology AB (STO:TANGI); the share price is down a whopping 74% in the last twelve months. While some investors are willing to stomach this sort of loss, they are usually professionals who spread their bets thinly. Tangiamo Touch Technology hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. Furthermore, it's down 28% in about a quarter. That's not much fun for holders. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.
See our latest analysis for Tangiamo Touch Technology
With just kr9,331,550 worth of revenue in twelve months, we don't think the market considers Tangiamo Touch Technology to have proven its business plan. This state of affairs suggests that venture capitalists won't provide funds on attractive terms. 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 Tangiamo Touch Technology will significantly advance the business plan before too long.
As a general rule, if a company doesn't have much revenue, and it loses money, then it is a high risk investment. 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 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). Some Tangiamo Touch Technology investors have already had a taste of the bitterness stocks like this can leave in the mouth.
Our data indicates that Tangiamo Touch Technology had net debt of kr6,577,889 when it last reported in March 2019. That makes it extremely high risk, in our view. But since the share price has dived -74% in the last year, it looks like some investors think it's time to abandon ship, so to speak. The image below shows how Tangiamo Touch Technology's balance sheet has changed over time; if you want to see the precise values, simply click on the image.