The Jericho Oil Share Price Is Down 51% So Some Shareholders Are Wishing They Sold

February 22, 2019
  •  Updated
October 05, 2022
Source: Shutterstock

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Investing in stocks comes with the risk that the share price will fall. And unfortunately for Jericho Oil Corporation (CVE:JCO) shareholders, the stock is a lot lower today than it was a year ago. To wit the share price is down 51% in that time. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 11% in three years. Shareholders have had an even rougher run lately, with the share price down 18%.

View our latest analysis for Jericho Oil

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...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Jericho Oil fell to a loss making position during the year. Some investors no doubt dumped the stock as a result. We hope for shareholders' sake that the company becomes profitable again soon.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

TSXV:JCO Past and Future Earnings, February 22nd 2019
TSXV:JCO Past and Future Earnings, February 22nd 2019

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

A Different Perspective

Jericho Oil shareholders are down 51% for the year, but the broader market is up 3.4%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. The three-year loss of 3.9% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. Before spending more time on Jericho Oil it might be wise to click here to see if insiders have been buying or selling shares.

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

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

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