Those Who Purchased Western Uranium & Vanadium (CNSX:WUC) Shares Three Years Ago Have A 56% Loss To Show For It

If you love investing in stocks you're bound to buy some losers. But long term Western Uranium & Vanadium Corp. (CNSX:WUC) shareholders have had a particularly rough ride in the last three year. Unfortunately, they have held through a 56% decline in the share price in that time. Furthermore, it's down 34% in about a quarter. That's not much fun for holders.

See our latest analysis for Western Uranium & Vanadium

With just US$43,465 worth of revenue in twelve months, we don't think the market considers Western Uranium & Vanadium to have proven its business plan. You have to wonder why venture capitalists aren't funding it. 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 Western Uranium & Vanadium will discover or develop new oil or gas reserves before too long.

Companies that lack both meaningful revenue and profits are usually considered high risk. 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). It certainly is a dangerous place to invest, as Western Uranium & Vanadium investors might realise.

Western Uranium & Vanadium had net debt of US$2,666,768 when it last reported in September 2018, according to our data. That makes it extremely high risk, in our view. But since the share price has dived -24% per year, over 3 years, it looks like some investors think it's time to abandon ship, so to speak. You can click on the image below to see (in greater detail) how Western Uranium & Vanadium's cash and debt levels have changed over time.

Of course, the truth is that it is hard to value companies without much revenue or profit. Would it bother you if insiders were selling the stock? I'd like that just about as much as I like to drink milk and fruit juice mixed together. You can click here to see if there are insiders selling.

A Different Perspective

We're pleased to report that Western Uranium & Vanadium rewarded shareholders with a total shareholder return of 36% over the last year. What is absolutely clear is that is far preferable to the dismal 24% average annual loss suffered over the last three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. You could get a better understanding of Western Uranium & Vanadium's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you are like me, then you will not want to miss this freelist of growing companies that insiders are buying.

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.