Did You Miss DMG Blockchain Solutions' (CVE:DMGI) Whopping 763% Share Price Gain?

For many, the main point of investing in the stock market is to achieve spectacular returns. When you find (and hold) a big winner, you can markedly improve your finances. For example, DMG Blockchain Solutions Inc. (CVE:DMGI) has generated a beautiful 763% return in just a single year. Also pleasing for shareholders was the 626% gain in the last three months. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

We love happy stories like this one. The company should be really proud of that performance!

View our latest analysis for DMG Blockchain Solutions

Given that DMG Blockchain Solutions 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

DMG Blockchain Solutions actually shrunk its revenue over the last year, with a reduction of 37%. This is in stark contrast to the splendorous stock price, which has rocketed 763% since this time a year ago. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. While this gain looks like speculative buying to us, sometimes speculation pays off.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that DMG Blockchain Solutions shareholders have gained 763% over the last year. A substantial portion of that gain has come in the last three months, with the stock up 626% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand DMG Blockchain Solutions better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with DMG Blockchain Solutions (at least 1 which is significant) , and understanding them should be part of your investment process.

We will like DMG Blockchain Solutions better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, 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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