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Every investor on earth makes bad calls sometimes. But really big losses can really drag down an overall portfolio. So spare a thought for the long term shareholders of Cogobuy Group (HKG:400); the share price is down a whopping 75% in the last three years. That would be a disturbing experience. And more recent buyers are having a tough time too, with a drop of 25% in the last year. The last week also saw the share price slip down another 8.2%.
Check out our latest analysis for Cogobuy Group
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.
Cogobuy Group saw its EPS decline at a compound rate of 7.8% per year, over the last three years. The share price decline of 37% is actually steeper than the EPS slippage. So it seems the market was too confident about the business, in the past. The less favorable sentiment is reflected in its current P/E ratio of 11.96.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
This free interactive report on Cogobuy Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
A Different Perspective
The last twelve months weren't great for Cogobuy Group shares, which performed worse than the market, costing holders 25%. Meanwhile, the broader market slid about 3.1%, likely weighing on the stock. However, the loss over the last year isn't as bad as the 37% per annum loss investors have suffered over the last three years. We'd need clear signs of growth in the underlying business before we could muster much enthusiasm for this one. Before forming an opinion on Cogobuy Group you might want to consider these 3 valuation metrics.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
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.
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. Thank you for reading.