Can You Imagine How Jubilant Canfor Pulp Products' (TSE:CFX) Shareholders Feel About Its 110% Share Price Gain?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Canfor Pulp Products Inc. (TSE:CFX) share price has soared 110% return in just a single year. Also pleasing for shareholders was the 21% gain in the last three months. But this could be related to the strong market, which is up 10% in the last three months. Zooming out, the stock is actually down 45% in the last three years.

See our latest analysis for Canfor Pulp Products

Given that Canfor Pulp Products 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Canfor Pulp Products saw its revenue shrink by 8.9%. We're a little surprised to see the share price pop 110% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. This free report showing analyst forecasts should help you form a view on Canfor Pulp Products

A Different Perspective

We're pleased to report that Canfor Pulp Products shareholders have received a total shareholder return of 110% over one year. That certainly beats the loss of about 0.7% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.

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 CA 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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