The Mandalay Resources (TSE:MND) Share Price Is Up 118% And Shareholders Are Boasting About It

Unfortunately, investing is risky - companies can and do go bankrupt. 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 Mandalay Resources Corporation (TSE:MND) share price has soared 118% in the last year. Most would be very happy with that, especially in just one year! On top of that, the share price is up 35% in about a quarter. Zooming out, the stock is actually down 19% in the last three years.

See our latest analysis for Mandalay Resources

Because Mandalay Resources made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Mandalay Resources grew its revenue by 45% last year. That's a fairly respectable growth rate. The revenue growth is decent but the share price had an even better year, gaining 118%. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's good to see that Mandalay Resources has rewarded shareholders with a total shareholder return of 118% in the last twelve months. That certainly beats the loss of about 11% per year over the last half decade. 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. It's always interesting to track share price performance over the longer term. But to understand Mandalay Resources better, we need to consider many other factors. For example, we've discovered 1 warning sign for Mandalay Resources that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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