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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. Take, for example Flat Glass Group Co., Ltd. (HKG:6865). Its share price is already up an impressive 216% in the last twelve months. And in the last month, the share price has gained 6.4%. It is also impressive that the stock is up 148% over three years, adding to the sense that it is a real winner.
See our latest analysis for Flat Glass Group
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Flat Glass Group was able to grow EPS by 3.9% in the last twelve months. The share price gain of 216% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on Flat Glass Group's earnings, revenue and cash flow.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Flat Glass Group the TSR over the last year was 220%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
A Different Perspective
It's nice to see that Flat Glass Group shareholders have gained 220% (in total) over the last year. And yes, that does include the dividend. That gain actually surpasses the 40% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Flat Glass Group by clicking this link.