Introducing Golden Leaf Holdings (CSE:GLH), The Stock That Zoomed 250% In The Last Year

The Golden Leaf Holdings Ltd. (CSE:GLH) share price has had a bad week, falling 22%. Despite this, the stock is a strong performer over the last year, no doubt about that. We're very pleased to report the share price shot up 250% in that time. So we think most shareholders won't be too upset about the recent fall. The real question is whether the business is trending in the right direction.

See our latest analysis for Golden Leaf Holdings

Given that Golden Leaf Holdings 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year Golden Leaf Holdings saw its revenue grow by 33%. We respect that sort of growth, no doubt. The revenue growth is decent but the share price had an even better year, gaining 250%. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.

The graphic below depicts how earnings and revenue have changed over time (unveil 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. That said, we think earnings and revenue growth trends are even more important factors to consider. This free interactive report on Golden Leaf Holdings' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Golden Leaf Holdings shareholders have received a total shareholder return of 250% over the last year. There's no doubt those recent returns are much better than the TSR loss of 13% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. 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 example, we've discovered 4 warning signs for Golden Leaf Holdings (1 doesn't sit too well with us!) that you should be aware of before investing here.

Golden Leaf Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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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