Announcing: iCandy Interactive (ASX:ICI) Stock Soared An Exciting 539% In The Last Year

The last three months have been tough on iCandy Interactive Limited (ASX:ICI) shareholders, who have seen the share price decline a rather worrying 43%. But over the last year the share price has taken off like one of Elon Musk's rockets. In that time, shareholders have had the pleasure of a 539% boost to the share price. So it is not that surprising to see the stock retrace a little. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).

Anyone who held for that rewarding ride would probably be keen to talk about it.

View our latest analysis for iCandy Interactive

Given that iCandy Interactive didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

iCandy Interactive actually shrunk its revenue over the last year, with a reduction of 30%. So it's very confusing to see that the share price gained a whopping 539%. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. While this gain looks like speculative buying to us, sometimes speculation pays off.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

This free interactive report on iCandy Interactive's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that iCandy Interactive has rewarded shareholders with a total shareholder return of 539% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 6% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. For instance, we've identified 5 warning signs for iCandy Interactive (2 make us uncomfortable) that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.

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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. 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.
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